eClerx is the only listed company operating in the area of KPO. This is a new field unlike IT,ITES or BPO which is already crowded and lost its niche in the milieue.
KPO is targetted as 16-18 Billion US opportunity and approx 60-70% is going to be an outsource business to mainly india and other poor nations like China, Romania, Hungary etc. But here again India will have an edge due to following reasosn:
1) Proven model for IT,ITES or BPO - historical leverage
2) English speaking abundant manpower supply
3) Again there is no shortage of skilled manpower in diverse areas like
medical, Legal, Marketing, analytics etc.
4) eClerx has 100% focus on KPO only, not tempting to enter into IT,ITES
or BPO
Risks:
In KPO sector confidentiality and skill retention is the key. In IT,ITES or BPO secotr skill issues are mitigated to large extent by processes and tools but in KPO one needs a good doctor to analyse X-Rays , a sound legal knowldge for legal tasks and so on. So in one way such diversity of skill base is an issue.
eClerx is having following statistics:
CMP: 300
RoE: 36
Profit Margin: 30%
Div: 100%
Mkt Cap: 565Cr
Debt : Zero
PE: 9+
MCap/Sales FY09 : approx 2.5 - 3
Growth rate for last 2 yrs: 50%
If you have the horizone of 2-3 yrs then i expect eClerx to grow by 1000Cr.
Why you are waiting?