Buy eClerx Services, target price Rs 2860: Emkay Global

Emkay Global has buy call on eClerx Services with a target price of Rs 2860. The current market price of eClerx Services is Rs 2457.9. Time period given by analyst is one year when eClerx Services Ltd. price can reach defined target.

eClerx Services Ltd., incorporated in the year 2000, is a Small Cap company (having a market cap of Rs 8315.89 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 31-12-2021, the company reported a Consolidated Total Income of Rs 563.48 Crore, up 7.50 % from last quarter Total Income of Rs 524.17 Crore and up 39.74 % from last year same quarter Total Income of Rs 403.24 Crore. Company reported net profit after tax of Rs 106.56 Crore in latest quarter.

Investment Rationale
The brokerage raises FY22-FY24E EPS by 3.3-5.4%, factoring the overall beat in Q3. It maintains Buy with a TP of Rs 2,860 (20x Dec'23E EPS), considering near-term demand tailwinds, the overall execution capabilities of the company and steady cash generation.

Promoter/FII Holdings
Promoters held 53.38 per cent stake in the company as of 31-Dec-2021, while FIIs owned 14.92 per cent, DIIs 19.0 per cent.