eClerx has witnessed USD revenue stagnation (+0.1% 12-qtr-CQGR) coupled with a structural swing in operating model (shift to onshore) resulting in EBIT margin plummet from 33.5% to 13.8% in the past 12 qtrs. We reckon that the shift to onshore will continue given the on-site heavy digital projects coupled with low demand for traditional KPO services. We remain cautious on high concentration and stagnation of T-10 accounts, shorter duration projects providing limited visibility and lower quality of revenue mix. We factor USD rev/EPS CAGR of 5.5/-2.3% over FY19-22E. High cash (~25% of Mcap) and dividend yield (4%) will provide some cushion. Company will maintain payout of ~50% of PAT but recent tax on buybacks has curbed the value arbitrage. Risks to our thesis include traction in digital portfolio and increased off shoring. We downgrade eClerx to SELL following margin washout and limited growth visibility. eClerx has lost the plot, we cut EPS est. by ~16% and P/E to 9x (vs. 11x) Jun-21E EPS to arrive at TP of Rs 505.