eClerx Services Limited (NSE:ECLERX) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders will be ecstatic, with their stake up 35% over the past week following eClerx Services Limited's (NSE:ECLERX) latest annual results. It was a workmanlike result, with revenues of ₹35b coming in 2.5% ahead of expectations, and statutory earnings per share of ₹112, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the ten analysts covering eClerx Services are now predicting revenues of ₹39.1b in 2026. If met, this would reflect a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 14% to ₹132. Before this earnings report, the analysts had been forecasting revenues of ₹41.5b and earnings per share (EPS) of ₹130 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

See our latest analysis for eClerx Services

The consensus price target rose 8.6% to ₹3,607, with the analysts apparently satisfied with the business performance despite lower revenue forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values eClerx Services at ₹4,200 per share, while the most bearish prices it at ₹3,326. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that eClerx Services' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this to the 66 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. So it's pretty clear that, while eClerx Services' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Still, earnings are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on eClerx Services. Long-term earnings power is much more important than next year's profits. We have forecasts for eClerx Services going out to 2028, 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.