Buy eClerx Services, target price Rs 2900: ICICI Direct

ICICI Direct has buy call on eClerx Services with a target price of Rs 2900. The current market price of eClerx Services is Rs 2879.85.

eClerx Services Ltd., incorporated in the year 2000, is a Small Cap company (having a market cap of Rs 8835.63 Crore) operating in IT Enabled Services sector.

eClerx Services Ltd. key Products/Revenue Segments include I T Enabled Services for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 524.17 Crore, up 5.73 % from last quarter Total Income of Rs 495.75 Crore and up 43.03 % from last year same quarter Total Income of Rs 366.46 Crore. Company reported net profit after tax of Rs 100.77 Crore in latest quarter.

Investment Rationale
Overall revenue mix has been inching towards offshoring as in the last four quarters, onshore revenue mix has come down from 23% to 20%, which is a tailwind to margin. The management do not expect materially different mix, going forward; guided for healthy EBITDA margin band of 28-32%

Promoter/FII Holdings
Promoters held 53.81 per cent stake in the company as of 12-Nov-2021, while FIIs owned 16.05 per cent, DIIs 17.55 per cent.