know company for healthy investment : e-clerx services ltd.

   image source: http://www.competeinfotech.com/images/bpo-outsourcing.jpg

        e-clerx was founded in 2000, e-clerx have knowledge process outsourcing business.This company providing middle and back office support  over 500 companies.Company has a headquarter in mumbai and have five delivery centre across India.Company has global client base in Financial services,broadband, e-commerce, retail,high tech works,software, media, and travel companies.

company was listed in india since 2007 on BSE and NSE with  BSE:532927 and NSE: ecler codes.company has 67% business in USA, 21% in Europe,8% in Asia and 5% in UK. Company have Data analysis,audits,services solutions, data processes based business and have many outsourcing BPO in many countries.

        e-clerx showing good sales data,EPS and BVPS growth sice last ten years,company have fairly consistent level of margins.In cash flows statement e-clerx showing strong operating cash flows, as we know strong operating cash flows have very important role in any company growth.One very important key is e-clerx is debt free company.In last few year e-clerx increase there working capital days.Working capital days have most important role in any BPO and out sourcing company.The 10 year ROIC & ROE averages nearly 172%.Company have no corporate governance issue, from year 2006, e-clerx showing sharp increase in operating profit margins and net profit margins and low provisions for taxes.Net sales increasing 40% year by year and 5 year CAGR nearly 40%.Over 6000+ employees working in e-clerx.

Report Card

PE Ratios

11.67

EPS (Rs.)

54.14

Sales (Rs. Cr)

145.84

Face Value (Rs.)

10

Net Profit
Margin (%)

31.79

Last Bonus

1:2

Last Dividend(%)

175

Return on
Average Equity

46.94

   

Mutual Funds Invested in e-clerx 

ICICI Prudential Services Industries Fund - Direct Plan - Growth

ICICI Prudential Services Industries Fund - Growth

ICICI Prudential Services Industries Fund - Direct Plan - Dividend

ICICI Prudential Services Industries Fund - Dividend

Tata Mid Cap Growth Fund - Direct Plan - Growth

    From the view of investment in this company looking very attractive with it's growth prospects.e-clerx trading with 1880 Crore market capital,  13.12 P/E, 12.06 P/C,Face value of 10rs each share, 48 EPS,Dividend yield of 3% per year. Average P/E Ratio of peer group companies of same sector is 13 and e-elerx have also same  13, EPS(TTM) is 48 showing good earning capacity of company. The valuations of company is looking fair for long term investment purpose. Promoters( including Foreign and Indian) have more then 53% share holding in company and FII have 35 % holding , public have  only 9.13% holding in e-clerx.This  fundamental analyses looking very good for a company, e-clerx looking  good to invest for long term purpose.