eClerx Services Ltd.- Another strong show, raise TP to Rs 885 :Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

eClerx Services Ltd.

Another strong show, raise TP to Rs 885

ACCUMULATE

CMP: Rs819                                        Target Price: Rs885

---

n     eClerx ‘s June’11 operating performance in line with expectations with revenues at US$ 22.3 mn(+5.7% QoQ) and margins down by ~280 bps QoQ  to 39.2%

n     Profits at Rs 351 mn (+19% QoQ) , marginally higher than expectations driven largely by higher other income. Net addition strong at 357(+10% QoQ) taking total HC to 4,015

n     Top 5 clients drive growth with ~8% QoQ growth. Co remains confident of deal pipeline ( 2-3 opportunities within top clients) along with intent to reduce client concentration

n     Retain ACCUMULATE with a revised DCF based March’12 TP of Rs 885(V/s Rs 840 earlier) as we tweak our FY12/13E EPS up by 1.6%/3.2% to Rs 52.2/63.9