u/Substantial-Poet-842

Since eClerx has already been covered in this channel I'll jump straight into Q1 results

https://www.reddit.com/r/IndiaGrowthStocks/s/sR9JUqzUm6

Disclaimer - took help of AI

OCF Q1 FY27: ₹1,073mn vs PAT ₹1,643mn → CFO < PAT this quarter.

the CFO/EBITDA conversion ratio is just 37.9%, far below the 62–75% annual norm. The reason is explicit and structural: Q1 always sees annual variable pay disbursements for the prior year. This is a seasonal mechanical pattern, not a quality deterioration. It has repeated every Q1 for years.

Monitor Q2 OCF — must recover toward 70%+ conversion.

Attrition: Offshore voluntary attrition improved sharply to 18.1% from 21.7% in Q4.

Revenue grew 2.8% QoQ in USD. The business did not slow — costs stepped up in one quarter due to the annual wage cycle. Every BPO in India shows this Q1 pattern.

The EBITDA margin of 23% is actually at the floor of management's guided range of 24–28%. Q2 onwards, with no fresh wage hike, operating leverage should kick in as revenue grows sequentially.

Revenue: 12th consecutive quarter of sequential USD growth. This is an exceptional streak for a company of this size and maturity.

ACV of new deals: $41mn, up 25% YoY. New deal wins are the leading indicator — revenue converts from deals with a 1–4 quarter lag. The ACV has nearly doubled in two years. The revenue engine is loading.

Analytics & Automation: Crossed $100mn annual run rate, grew 7% sequentially vs company average of 2.8%. The highest-margin, highest-value segment is growing fastest.

Emerging verticals: Now 11.7% of revenue mix vs 8.4% in FY26 — F&A, high-tech, and emerging geographies building momentum.

BFSI: Down from 40.8% to 37.6% of mix — still the largest vertical but losing share. Management says H2 recovery as pipeline converts. This is the key thesis risk to monitor.

Tech Services headcount: 2,261 vs 2,109 last quarter — 7.2% sequential increase. This is investment in AI capability ahead of demand. It's a cost now, revenue later pattern.

Annualised Q1 EPS: ₹17.86 × 4 = ~₹71.4 (but Q1 is always margin-suppressed due to wage cycle)

Better to use: FY26 PAT = ₹7,062mn on ~9.41Cr shares = FY26 EPS ₹75 as base, with Q1 showing the trough of the annual cycle.

FY27 EPS estimate: If margins recover to 25% EBITDA average for the year (guidance midpoint is 26%), and revenue grows ~15% YoY in USD on INR terms ~23%:

FY27E Revenue: ~₹50,000mn (conservative)

EBITDA at 25.5%: ~₹12,750mn

PAT at ~14.5% margin: ~₹7,250mn

EPS: ~₹77 (modest growth vs FY26's ₹75–76)

The EPS growth will look modest in FY27 purely because Q1 is depressed and the agentic AI deal revenue starts only Q4 FY27. FY28 is where the earnings acceleration appears on the P&L.

Since I classify it as a hybrid platform business, PE well below the Hybrid Type 1 ceiling of 35–38x.

Ex-cash P/E = (1872-137)/75 = 21.88x. Cheap imo.

EPS Engine: ⚠️ Temporarily pressured but structurally intact

P/E Engine: ⚠️ Still compressed but recovering

The hedge table is outstanding insight

Current spot INR/USD is ~94.5. eClerx is hedged well below spot for the rest of FY27, meaning as each quarter rolls, they get better realisation than the last. By Q4 FY27, they'll realize ₹92 vs ₹88 in Q1 — a 4.2% revenue tailwind just from FX rolling through. This is an automatic margin booster that requires zero operational effort.

Bottom line: This is a typical "Q1 seasonal trough + wage reset" quarter.

Disclaimer - I am holding this stock for a long time now and I've added some today as well. If it continues falling, I'll buy again at around 1650.

First try writing a post on this thread. Thanks to @superbpercentage8050

Disclaimer - I have used AI

The idea is simple, India grows, the Indian stock market grows, CAMS grows.

When a new gold mine is found, the ones who dug up and found gold made the most money (equivalent to finding a multibagger), the ones who didn't were left empty handed (equivalent to finding a bad stock) but the best way to make imo was selling tools to dig up gold (which is CAMS imo)

CFO>PAT for the last 9 years

CFO/OP = 110%

3 Year ROE avg ~41%

Very low D/E (platform business)

Receivable days around 20

Since it's a platform business, I'm comfortable giving it a fair PE from 40x to 50x

Moat - Infinite switching cost, once you're on CAMS, you're here forever

""Switching costs are structurally near-infinite — mutual fund houses have zero practical incentive to change RTAs given operational disruption costs, regulatory complexity, and complete integration requirements. Network effects are real: the more fund houses CAMS services, the more investors prefer CAMS-serviced funds for seamless inter-scheme transfers. Revenue is recurring, predictable, and grows organically with India's AUM base.""

EPS engine accelerating

Neutral PE engine

At a price of 780, CAMS doubles in 5 years with a CAGR of 15% which is good imo

*It's a stellar exceptional business with serious runway

The only question is, is it too expensive?*

If you made till here, I'll urge you to go through their latest concall - it has all the details about their different businesses, and shows their exemplary capital allocation

Also, at a few places you see they are running after margins, not revenue - like the cards business

Disclaimer - I have made some assumptions and I already have a position in the stock at an avg of 680

I'm planning to buy a new phone through Amazon/Flipkart and I'll be exchanging my old phone. After I receive my new phone, how much time will I get to transfer my data to the new phone and then give it away? How will the payment happen? Can anyone take me through the process/comment link to a post where this has been discussed? Thanks!

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