Eclerx (CMP ~ 656) is one of the leading KPO service providers of the country. A sound business model with consistent growth in revenue and profits, high ROE, debt free Balance Sheet, consistent q-o-q growth since last 20 quarters (barring two quarters where there was a marginal miss), good management, good dividend yield (~ 3%) and a reasonable valuation (FY 12 PE ~ 12) looks a good investment opportunity for long term
Some of the risks: 1) Is in the business that most of us would find it difficult to understand 2) High Client concentration â Top five clients contribute to nearly ~ 80% of revenues 3) Exposed to currency fluctuation risk (because of mostly foreign currency billing) 4) There is a global debate going on whether the outsourcing to India will continue in light of the recessionary trends in US and Prez Obamaâs efforts to reduce outsourcing to boost local development and employment trends
Just wanted to know why is it that nobody in this forum has yet written about this company??