Board likely to announce buyback and dividends; High ROCE and ROE; FIIs Increase stake recently; Heavy buying seen in last three days!

The company's shares have delivered a multibagger return of over 280 per cent to their shareholders.

Eclerx Services Limited is engaged in providing Knowledge Process Outsourcing (KPO) services to global companies. The company provides data management, analytics solutions, and process outsourcing services to a host of global clients through a network of multiple locations in India and abroad.

Recent Update:

The company has informed its investors that it has scheduled a Board of Directors meeting on Thursday, May 16, to consider and approve proposals for dividends, and the buyback of the company’s shares, and to approve and announce Quarterly Results as well as annual results. Earlier, in December 2022, the company announced a buyback, and in September 2022, it issued bonus shares.

Share Performance:

Today, this Small-Cap company’s stock opened at Rs 2341.05 and it is currently trading at Rs 2373.05 per share on the BSE representing a gain of 3.12 per cent. The stock has delivered a multibagger return of around 194 per cent in the past three years and 283 per cent over the past five years. The current market capitalisation of the company stands at Rs 11,633 crore.

Financial Performance:

As per quarterly results in Q3 FY24, Eclerx reported revenues of Rs 753 crore, reflecting a growth of 9.62 per cent YoY compared to the same quarter in the previous year, when the revenue stood at Rs 687 crore. The company posted an operating profit of Rs 207 crore for the quarter, in contrast to an operating profit of Rs 191 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net profit of Rs 139 crore, compared to a net profit of Rs 131 crore in the same period last year.

The company’s ROCE and ROE are 36.5 per cent and 29.3 per cent while the shares are trading at a PE of 22.7 times in the market. 

Investors must keep this multibagger stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.