Check Before You Invest : eClerx Services Ltd

Q: Which industry/sub-sector does eClerx Services Ltd belong to?

eClerx Services Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.

Q: Is eClerx Services Ltd a good quality company?

eClerx Services Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is eClerx Services Ltd undervalued or overvalued?

eClerx Services Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 20.46, Historic Median: 22.48. Price to Book, Current: 5.64, Historic Median: 5.64. Price to Sales, Current: 3.51, Historic Median: 4.17. EV to EBITDA, Current: 11.89, Historic Median: 13.57

Q: Is eClerx Services Ltd a good buy now?

eClerx Services Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of eClerx Services Ltd?

eClerx Services Ltd revenue growth is 15.1% for FY-2025, which is below its 5-year CAGR of 18.55%, indicating slower growth.

Q: Gross Profit margin of eClerx Services Ltd?

eClerx Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.5% for FY-2025, which is below its 5-year median of 29%, indicating decreasing margins.

Q: Operating Profit Margin of eClerx Services Ltd?

eClerx Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.43% for FY-2025, which is below its 5-year median of 27.32% indicating decreasing margins.

Q: Net Profit Margin of eClerx Services Ltd?

eClerx Services Ltd Net Profit Margin is 16.08% for FY-2025, is below its 5-year median of 18.08%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 25.5, Historic Median: 29. Operating Profit Margin (%), Current: 24.43, Historic Median: 27.32. Net Profit Margin (%), Current: 16.08, Historic Median: 18.08

Q: Return on Asset of eClerx Services Ltd?

eClerx Services Ltd Return on Asset is 18.26%, which is below its 5-year historical median of 20.11%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of eClerx Services Ltd?

eClerx Services Ltd Return on capital employed is 33.15% for FY-2025, which is below its 5-year historical median of 36.02%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : eClerx Services Ltd

BSE: 532927 NSE: ECLERX ISIN: INE738I01010

| Sector: IT & ITES | Industry: BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does eClerx Services Ltd belong to?

eClerx Services Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.

Q.2 Is eClerx Services Ltd a good quality company?

eClerx Services Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is eClerx Services Ltd undervalued or overvalued?

eClerx Services Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	20.46	22.48
Price to Book	5.64	5.64
Price to Sales	3.51	4.17
EV to EBITDA	11.89	13.57

Q.4 Is eClerx Services Ltd a good buy now?

eClerx Services Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of eClerx Services Ltd?

eClerx Services Ltd revenue growth is 15.1% for FY-2025, which is below its 5-year CAGR of 18.55%, indicating slower growth.

Q.2 Gross Profit margin of eClerx Services Ltd?

eClerx Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.5% for FY-2025, which is below its 5-year median of 29%, indicating decreasing margins.

Q.3 Operating Profit Margin of eClerx Services Ltd?

eClerx Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.43% for FY-2025, which is below its 5-year median of 27.32% indicating decreasing margins.

Q.4 Net Profit Margin of eClerx Services Ltd?

eClerx Services Ltd Net Profit Margin is 16.08% for FY-2025, is below its 5-year median of 18.08%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	25.5	29
Operating Profit Margin (%)	24.43	27.32
Net Profit Margin (%)	16.08	18.08

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of eClerx Services Ltd?

eClerx Services Ltd Return on Asset is 18.26%, which is below its 5-year historical median of 20.11%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of eClerx Services Ltd?

eClerx Services Ltd Return on capital employed is 33.15% for FY-2025, which is below its 5-year historical median of 36.02%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of eClerx Services Ltd?

eClerx Services Ltd Return on equity is 24.28% for FY-2025, which is below its 5-year historical median of 26.13%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of eClerx Services Ltd?

eClerx Services Ltd Cash conversion cycle is 69 days, above its 5-year historical median of 55 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.14	1.14
ROE (%)	24.28	26.13
ROCE (%)	33.15	36.02
Cash Conversion Cycle	69 days	55 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of eClerx Services Ltd?

eClerx Services Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of eClerx Services Ltd?

eClerx Services Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of eClerx Services Ltd?

Q.1 Promoter shareholding and pledge status of eClerx Services Ltd?

Promoters hold 54.52% of the eClerx Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does eClerx Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of eClerx Services Ltd vs industry peers?

eClerx Services Ltd revenue CAGR is 18.55%, compared to the industry median CAGR of 3.91%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	15.1	3.9
Gross Profit Growth (%)	5.3	10.8
Operating Profit Growth (%)	4.3	10.8
Net Profit Growth (%)	5.7	8.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.14	0.72
ROE (%)	24.28	10.43
ROCE (%)	33.15	15.4
Cash Conversion Cycle (days)	68.87	38

Valuation & price assessment

Q.1 Stock return of eClerx Services Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 12.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	12.7%	31.5%	29.8%	-7.6%

Q.2 Valuation ratios of eClerx Services Ltd vs historical?

The current P/E ratio of 20.46 is lower than its historical median of 22.48, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	20.46	22.48	29.72
Price to Book	5.64	5.64	2.75
Price to Sales	3.51	4.17	4.18
EV to EBITDA	11.89	13.57	15.58

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Check Before You Invest : eClerx Services Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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