eClerx Services (ECLERX)

FairStock Score: 81/100 — HIGH CONVICTION

Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I'm looking at eClerx as a Graham-style bargain hunter and Buffett-style business owner. At ₹1,897, market cap ₹17,457 Cr, P/E 24.57, P/B 6.85, book value ₹276.88. The business quality looks strong: ROE 29.01%, ROCE 27.97%, debt/equity only 0.15, FCF ₹798 Cr. Piotroski 8/9 and Altman Z 5.89 suggest accounting strength and low bankruptcy risk. Promoter holding 54.53% aligns interests. Growth has been real: 5yr revenue CAGR 18.54%, sales growth 17.33%, profit growth 42.90%, latest quarter sales ₹1,070 Cr and net profit ₹192 Cr. That is a fast-growing KPO with high returns and low leverage. The moat likely comes from client stickiness, process expertise and scale, though I don't see pricing power quantified here. Valuation is the rub. Graham Number is ₹1,219.35, below price, with margin of safety -160.17% by the given figure; P/B 6.85 is rich for my taste. PEG 1.23 is not outrageous, and DCF intrinsic value is ₹8,958.17, a huge bullish signal, but it clashes with Graham's asset-based caution. EV/EBITDA -19.93 looks unusual and needs explanation. Dividend yield 0.05% offers little income. The 52-week range ₹1,321.00–₹2,497.50 shows volatility. At 24.57 times earnings, I'd demand a wider discount. If that growth persists, the P/E can be justified; if it slows, the high P/B leaves little room for error. FairStock score 81/100 is high conviction, but I'd only nibble on dips. This is a quality fast grower, not a classic Graham bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer