Analysts Are Updating Their eClerx Services Limited (NSE:ECLERX) Estimates After Its First-Quarter Results

eClerx Services Limited (NSE:ECLERX) shareholders are probably feeling a little disappointed, since its shares fell 5.0% to ₹2,402 in the week after its latest first-quarter results. It looks like the results were a bit of a negative overall. While revenues of ₹7.8b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.3% to hit ₹22.72 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for eClerx Services

Taking into account the latest results, the current consensus from eClerx Services' eight analysts is for revenues of ₹32.6b in 2025. This would reflect a satisfactory 7.7% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be ₹109, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹32.5b and earnings per share (EPS) of ₹110 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of ₹2,658, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic eClerx Services analyst has a price target of ₹3,100 per share, while the most pessimistic values it at ₹2,150. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that eClerx Services' revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than eClerx Services.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹2,658, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for eClerx Services going out to 2027, and you can see them free on our platform here..

We also provide an overview of the eClerx Services Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.