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Buy eClerx Services; target of Rs 2900: ICICI Direct

ICICI Direct is bullish on eClerx Services recommended buy rating on the stock with a target price of Rs 2900 in its research report dated December 30, 2021.

December 30, 2021 / 10:28 AM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
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ICICI Direct's research report on eClerx Services


eClerx Services (eClerx) provides business process management, automation and analytics services. It caters to financial services, communications, retail, media, manufacturing, travel and technology companies • OCF to EBITDA of >80%, debt free and RoCE of >20%.



Outlook


We remain positive on the stock and maintain BUY rating. We roll over valuations to FY24E and value eClerx at Rs 2900 i.e. 21x P/E on FY24E EPS.

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first published: Dec 30, 2021 10:28 am
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