eClerx Services Share Price Target Forecast 2022, 2023, 2025, 2030

17 DECEMBER 2021

Emkay Global Financial recommends eClerx Services with a target price of Rs 2700.

In its research report dated December 15, 2021, Emkay Global Financial suggested a buy rating on eClerx Services with a target price of Rs 2700.

The post-FY20 resurgence in eClerx’s revenue growth looks to be sustainable, in our opinion, after five years of lacklustre performance. A solid demand environment, decreased roll-offs, stability at major customers, and ongoing expansion in developing clients are driving the rebound. Over FY21-24E, we expect a 15 percent revenue CAGR (organic 11.4%). After a 1560bps drop in FY16-20, EBITM recovered sharply by 690bps/340bps YoY in FY21/H1FY22. Revenue acceleration, WFH reductions, and other operational efficiency boosted EBITM growth. We anticipate a partial normalisation of WFH-related opex reductions.

During FY22-24, we predict EBITM to moderate but stay stronger than in FY20. eClerx has been effective in acquiring digital capabilities, diversifying its portfolio, and integrating those capabilities into its company, resulting in strong upsell and cross-sell potential. Clients in the SMB sector will be added as a result of the Personiv purchase, which will provide chances to cross-sell automation, analytics, and other managed services to SMB clients.

Outlook

Consider near-term demand tailwinds, overall execution skills of the firm, stable cash generation, and forecasts of a 16.6% profit CAGR over FY21-24, we commence with Buy and a TP of Rs2,700 at 20x on Dec’23E EPS.

moneycontrol.com is the source for this information.


17 DECEMBER 2021

Why is Eclerx Stock a Good Trading Pick?

eClerx Services Ltd (NS:ECLE) is a worldwide Fortune 500 company that delivers vital business operations services to financial services, cable and telecommunications, retail, fashion, media & entertainment, manufacturing, travel and leisure, software, and high-tech firms. The stock is now selling at a discount of 13.2 percent to its 52-week high. The 52-week high and low are Rs 2,621 and Rs 718, respectively.

Technical considerations to consider:

Time limit of one week: (Chart 1)

Eclerx stock is trading in an Ascending Triangle pattern on a weekly time period. We can also observe that the stock has solid support at the Rs 2,040 mark, from which it may support and rebound back. We anticipate the stock to rise, and we should see a breakthrough once it hits Rs 2,400. The increasing trend is projected to be supported by higher-than-average volumes. The Relative Strength Index (or RSI) is greater than 55, indicating that the stock is experiencing significant positive momentum. Long-term investors may buy now at this price. On a weekly closing basis, the stop-loss should be kept at Rs 1,930.

Time period of one day: (Chart 2)

On a daily timeframe, you can see that the Eclerx stock has formed a Double Bottom. The scrip is also testing a significant resistance level of Rs 2,270, as we can observe. We expect the stock to rise in value, aided by increased volume. The Moving Average Convergence Divergence (or MACD) line is above the signal line, and the RSI is above 50. It suggests that the stock is gaining momentum. Once the stock has established itself above the Rs 2,270 barrier, positional traders can join. On a daily closing basis, they should hold the stop loss at Rs 2,040.

Conclusion:

Eclerx stock is expected to retain its favourable bias and trend higher from present levels. Short-term traders might take advantage of the present price. On a daily closing basis, a strict stop loss of Rs 2,182 should be maintained.

Investing.com is the source for this information.


08 NOVEMBER, 2021

What should e-Clerx Services investors do now?

Kotak Securities’ Shrikant Chouhan suggests

On November 4, the stock began with a 10% gap and to a new all-time high of Rs 2,470, before hitting resistance at Rs 2,400. Perhaps traders are waiting for a breakout on either side of the stock’s non-directional action.

The significant breakout level to monitor for the bulls is Rs 2,450. We might predict a fast rising rise above Rs 2,550-2,700 if the stock manages to close above the same. Trading below Rs 2,225, on the other hand, might lead to additional weakening up to Rs 2,100-2,025.

moneycontrol.com is the source for this information.


15 JUNE 2021

ICICI Direct recommends buying eClerx Services with a target price of Rs 1640.

In a research study dated June 11, 2021, ICICI Direct is positive on eClerx Services’ recommended buy rating on the company, with a target price of Rs 1640.

eClerx Services reported robust Q4FY21 sales, growing 19.3% quarter over quarter (in constant currency terms) and 19.7% quarter over quarter (in reported dollars). Organic growth was 6.3 percent QoQ, with the rest coming from the purchase of Personiv. Lower S&D costs and greater gross margins boosted EBIT margins by 295 basis points to 27.6%. PAT jumped by 39% from the previous quarter to Rs 98.8 crore. A dividend of Rs 1/share has been suggested by the corporation.

Outlook

We retain our BUY recommendation on the company, with a revised target price of Rs 1,640, based on this, as well as attractive values and a robust balance sheet (15x PE on FY23E EPS, earlier target price Rs 1,150).

moneycontrol.com is the source for this information.


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