This multibagger stock rises 188% in 2021. ICICI Securities has ‘Buy’ rating

Dec 31, 2021
multibagger stocks 1640934879346 1640934879510

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eClerx Services (eClerx) provides business process management, automation and analytics services. It caters to financial services, communications, retail, media, manufacturing, travel and technology companies.

eClerx share price has grown by around 1.8x over the past five years, from around 1,357 in December 2016 to 2,419 levels in December 2021. The domestic brokerage and research firm ICICI Securities remains positive on the multibagger stock, that has rallied 188% in 2021 and maintains its Buy rating. 

The brokerage expects eClerx shares to rise further as it has a target price of 2,900 per share with target period of around twelve months.

eClerx’s Revenues in the past four to five years were subdued due to three to four large roll-offs, which took place during 2016-19. However, the company has been reporting strong growth in recent quarters and guided for 20%+ growth in FY22, the note highlighted.

“The company recently acquired personiv, an outsourcing provider with over 35+ years of experience with offices in US, India and Philippines. The acquisition would leverage synergies in digital and customer experience services. It would add around $32 million annual revenues to eClerx,” it added.

Traction in customer care, RPA, analytics & content development, cross sell and up sell to Personiv clients to drive growth, lower roll-offs from one off client specific event, improving deal wins and revival in growth are expected to drive revenues to act as key triggers for future price performance, as per ICICI Securities.

Apart from eClerx, in its IT coverage, the brokerage house also likes Infosys on key beneficiary of improved digital demand, industry leading revenue growth and healthy capital allocation prompt us to be positive. Its Buy tag on Infosys comes with a target price of 2,060 per share.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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