NSEI:ECLERX

Stock Analysis Report

Executive Summary

eClerx Services Limited provides data management, analytics, and process outsourcing services in the United States, the United Kingdom, Europe, and the Asia Pacific.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has eClerx Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ECLERX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

ECLERX

2.0%

IN IT

-3.0%

IN Market


1 Year Return

-67.4%

ECLERX

-15.3%

IN IT

-29.2%

IN Market

Return vs Industry: ECLERX underperformed the Indian IT industry which returned -15.3% over the past year.

Return vs Market: ECLERX underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

ECLERXIndustryMarket
7 Day-0.7%2.0%-3.0%
30 Day-35.3%-19.0%-26.9%
90 Day-32.2%-18.6%-28.5%
1 Year-67.4%-67.4%-12.6%-15.3%-27.7%-29.2%
3 Year-73.4%-73.5%35.3%27.0%-15.2%-19.9%
5 Year-68.0%-68.9%30.5%18.0%-3.1%-8.1%

Price Volatility Vs. Market

How volatile is eClerx Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is eClerx Services undervalued compared to its fair value and its price relative to the market?

48.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ECLERX (₹373.75) is trading below our estimate of fair value (₹719.63)

Significantly Below Fair Value: ECLERX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ECLERX is good value based on its PE Ratio (6.5x) compared to the IT industry average (7x).

PE vs Market: ECLERX is good value based on its PE Ratio (6.5x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: ECLERX is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ECLERX is overvalued based on its PB Ratio (1.1x) compared to the IN IT industry average (0.7x).


Next Steps

Future Growth

How is eClerx Services forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECLERX's forecast earnings growth (7.2% per year) is above the savings rate (6.5%).

Earnings vs Market: ECLERX's earnings (7.2% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: ECLERX's earnings are forecast to grow, but not significantly.

Revenue vs Market: ECLERX's revenue (6.2% per year) is forecast to grow slower than the Indian market (9.1% per year).

High Growth Revenue: ECLERX's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECLERX's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has eClerx Services performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECLERX has high quality earnings.

Growing Profit Margin: ECLERX's current net profit margins (14.7%) are lower than last year (16.4%).


Past Earnings Growth Analysis

Earnings Trend: ECLERX's earnings have declined by -6% per year over the past 5 years.

Accelerating Growth: ECLERX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ECLERX had negative earnings growth (-8.9%) over the past year, making it difficult to compare to the IT industry average (7.2%).


Return on Equity

High ROE: ECLERX's Return on Equity (17.9%) is considered low.


Next Steps

Financial Health

How is eClerx Services's financial position?


Financial Position Analysis

Short Term Liabilities: ECLERX's short term assets (₹10.0B) exceed its short term liabilities (₹2.0B).

Long Term Liabilities: ECLERX's short term assets (₹10.0B) exceed its long term liabilities (₹1.7B).


Debt to Equity History and Analysis

Debt Level: ECLERX's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ECLERX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ECLERX's debt is well covered by operating cash flow (23086.5%).

Interest Coverage: ECLERX earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ECLERX has a low level of unsold assets or inventory.

Debt Coverage by Assets: ECLERX's debt is covered by short term assets (assets are 807.5x debt).


Next Steps

Dividend

What is eClerx Services's current dividend yield, its reliability and sustainability?

0.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ECLERX's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: ECLERX's dividend (0.27%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: ECLERX is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: ECLERX is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ECLERX is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ECLERX's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

eClerx Services has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Anjan Malik
Co-Founder & Non-Executive Director19.83yrsno data25.32% 3.5b
Priyadarshan Mundhra
Co-Founder & Executive Director20yrs₹21.39m25.33% 3.5b
Rohitash Gupta
Chief Financial Officer8.83yrs₹12.94m0.081% 11.2m
Pratik Bhanushali
Company Secretary & Compliance Officer2.17yrs₹3.13m0.00011% 15.2k
Scott Houchin
Managing Principal of Digital2.33yrsno datano data
Robert Horan
Managing Principal of Customer Operations2.33yrsno datano data
Stephen Vena
Managing Principal of Financial Markets2.33yrsno datano data
Hoshi Mistry
Principal of Global Operations2.33yrs₹15.82mno data
Amir Bharwani
Principal of HR2.75yrsno datano data
Sandeep Dembi
Principal of Financial Servicesno data₹30.00mno data

2.3yrs

Average Tenure

46yo

Average Age

Experienced Management: ECLERX's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anjan Malik
Co-Founder & Non-Executive Director19.83yrsno data25.32% 3.5b
Priyadarshan Mundhra
Co-Founder & Executive Director20yrs₹21.39m25.33% 3.5b
Anish Ghoshal
Non-Executive Independent Director12.58yrs₹2.12m0.000010% 1.4k
Pradeep Kapoor
Independent Chairmanno data₹2.06m0.020% 2.7m
Biren Gabhawala
Non Executive Independent Director8.83yrs₹2.12m0.017% 2.3m
Alok Goyal
Non-Executive Independent Director7.83yrs₹2.06mno data
Deepa Kapoor
Non Executive Independent Director6yrs₹2.12mno data
Shailesh Kekre
Non-Executive Independent Director3yrs₹2.12mno data

8.8yrs

Average Tenure

50yo

Average Age

Experienced Board: ECLERX's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

eClerx Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: eClerx Services Limited
  • Ticker: ECLERX
  • Exchange: NSEI
  • Founded: 2000
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: ₹13.823b
  • Shares outstanding: 36.98m
  • Website: https://www.eclerx.com

Number of Employees


Location

  • eClerx Services Limited
  • Express Towers
  • 4th Floor
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532927BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2007
ECLERXNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2007

Biography

eClerx Services Limited provides data management, analytics, and process outsourcing services in the United States, the United Kingdom, Europe, and the Asia Pacific. The company offers customer experience solutions for business process optimization and customer interaction monitoring; field technical operations services for avoidable truck roll, dispatch services, connected homes, return merchandise authorization, and revenue assurance; omnichannel customer support services; advanced and digital analytics, and enterprise business intelligence solutions; and robotic process automation, Q-clips, workforce manager solutions, as well as chatbots and QA testing with test assure. It also provides digital solutions, such as A/B testing and optimization, campaign operations, CGI, creative services, data management, digital analytics, digital asset management, forecasting solutions, intelligent automation, personalization, pricing and competitive intelligence, replatforming, search engine optimization, social media services, tag management, and Website search optimization. In addition, the company offers derivative trade support, cash securities operations, regulatory compliance and data, document management, and analytics solutions, as well as technology products. It serves financial services, cable and telecommunications, retail, fashion, media and entertainment, manufacturing, travel and leisure, software, and high-tech industries. The company was founded in 2000 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:08
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.