eClerx’s business outlook on the revenue front is likely to improve in FY20E led by newer growth areas. However, incremental revenue growth is coming on higher onsite proportion, and upfront investments are required to be made to drive incremental growth. Thus, even as margin seems to have stabilised, there are enough headwinds to ensure no margin upside at least in the near- term. Offshore attrition, which is at its highest level since 2QFY11, also necessitates continuing investments to reduce employee turnover. Consistent share buy-backs (Rs2.6bn at Rs1,500, a huge 62% premium to the CMP, yield of >7%) are likely to arrest further decline in stock price.Downwardly revising our target PE multiple by 13x (14x) given lack of revenue acceleration, we maintain our HOLD recommendation on the stock with a revised Target Price of Rs990 (from Rs1,015 earlier).