eClerx Services Ltd.

eClerx Services Ltd., incorporated in the year 2000, is a Mid Cap company operating in the Information Technology sector. It is a specialist knowledge and business process outsourcing company providing operational support, data management, and analytics solutions.

eClerx Services Ltd - Potential Catalysts

• New acquisitions would drive the top-line growth

• Establishing its global delivery capabilities with operations in three European and two Asian countries including India

• Emerging clients taking the top position, supporting the top-line growth

• The short term projects to contribute more than half of revenue growth

eClerx Services Ltd - Recommendation

We expect the company to maintain its strong top-line growth in FY16E, which is driven by inorganic growth (CLX acquisition). We maintain a positive outlook for the company, despite the flattish growth expected in revenue and margins in Q4FY16E. We recommend a “BUY” rating at a CMP of 1345 with a target price of Rs.1594 per share.

eClerx Services Ltd - Financial Summary

eClerx Services Ltd - BUSINESS DESCRIPTION

eClerx Services Limited is an India-based Knowledge and Business Process Outsourcing (KPO/BPO) company. The Company provides operational support, data management, and analytics solutions to companies, including high-tech, industrial manufacturing, financial services, e-commerce, retail and distribution, broadband, cable and telecom, interactive media and entertainment, travel and leisure, and software vendors. The Company provides financial solutions, such as trade processing support, contract risk review, reconciliation and controls, margin and exposure management, metrics and reporting, and expense management, among others. Digital branding includes content creation, multi-channel media content management, and digital asset management, among others. Digital marketing comprises online operations and Web analytics, data management and reporting, and quality and compliance, among others. It has operations in the United States, the United Kingdom, Europe, and the Asia Pacific.

MANAGEMENT & GOVERNANCE

Shareholding Pattern as on Dec 31st, 2015

eClerx Services Ltd. key Products/Revenue Segments include I T Enabled Services which contributed Rs 818.34 Cr to Sales Value (100.00% of Total Sales), for the year ending 31-Mar-2015.

The company’s management includes Mr.Alok Goyal, Mr.Anish Ghoshal, Mr.Anjan Malik, Mr.Biren Gabhawala, Mr.Gaurav Tongia, Mr.P D Mundhra, Mr.Pradeep Kapoor, Mr.Rohitash Gupta, Mr.V K Mundhra, Mr.Vikram Limaye, Ms.Deepa Kapoor, Mr.Gaurav Tongia.

The company has S R Batliboi & Associates as its auditors.

Fund Holding

INDUSTRY OUTLOOK

India is home to over 3500 BPM (Business Process Management) companies and has a share of 55% in the global sourcing market. IT-BPM industry has the highest relative share in India’s GDP and is the largest private-sector employer having around 3.5 Mn employees. BPM industry grew at the rate of 12% in FY15 to US$ 26 Bn and will likely maintain the pace of expansion this year. According to the Nasscom BPM council, the BPM industry is on course to achieve US$ 50 Bn by 2020. Digital also became mainstream during the year, with the industry increasingly investing in digitized solutions to drive future growth opportunities.

BFSI (Banking, Financial Services, and Insurance) sector is holding the highest percentage in terms of sector-wise contribution to the IT-BPM industry. In BFSI services, the company has the huge potential to grow its client base.