Capgemini Technology Services India, previously known as iGate Global Solutions, operates as a subsidiary of Capgemini SE, a renowned multinational IT conglomerate headquartered in Paris, with an impressive annual revenue of €18 billion. With a global presence spanning over 50 countries, Capgemini specialises in an array of IT services, including cloud, data, AI, connectivity, software, digital engineering, and platforms. Despite being unlisted, the company has witnessed significant demand for Capgemini shares, setting it apart from its listed counterparts like TCS and Infosys. This begs the question: What sets Capgemini India apart, and is investing in its unlisted shares prudent? Let’s delve deeper to find out.
About Capgemini India
Capgemini India caters primarily to medium and small enterprises worldwide, with offshore centres strategically located across prominent Indian cities, including Bangalore, Hyderabad, Chennai, Mumbai, and more. The company boasts two notable subsidiaries: Annik Inc. USA, which specialises in market research, data integration, and analytics, and Aricent Technologies, which focuses on communication software services and network management. With a substantial workforce of 1,69,000 as of December 2021, Capgemini India significantly contributes to its parent company’s global manpower, which stands at 3,25,000.
Business & Financial Overview
Capgemini India’s revenue streams are diversified across different regions, with major markets being the Americas, Europe, India, and the Rest of the World. Despite exhibiting a decent growth trajectory in recent years, with a Compound Annual Growth Rate (CAGR) of 8.05% in revenue and 4.36% in profits over the last four years, the company faces stiff competition from industry giants like TCS, Infosys, and HCL Tech. Despite challenges, Capgemini’s share price India continues to be strong. While its revenue growth aligns closely with Wipro and Tech Mahindra, its profit growth lags behind its peers. Notably, Capgemini India’s revenue growth trails that of its parent company, which reported a robust 14.6% growth in 2021.
Investment Outlook
Despite its underwhelming profit growth and revenue performance relative to industry leaders, investing in Capgemini shares presents an attractive investment proposition. The company exhibits strong fundamentals and growth potential with a debt-to-equity ratio of 0.1 and a stronghold in emerging technologies, such as cloud and AI. Moreover, its unlisted shares have consistently garnered investor interest, reflecting confidence in its long-term prospects. However, investors should carefully weigh the company’s financial performance against industry benchmarks and consider market dynamics, competition, and the regulatory environment before making investment decisions.
Conclusion
Capgemini India, a subsidiary of the global IT giant Capgemini SE, stands out in the Indian IT landscape with its diverse service offerings and robust global presence. While its financial performance may not match industry leaders, its strategic positioning, strong fundamentals, and growing demand for its unlisted shares make it an intriguing investment opportunity. As with any investment, thorough research and due diligence are essential to assess risk and potential returns. Investing in Capgemini’s unlisted shares could prove rewarding for investors seeking exposure to the dynamic IT sector in India.
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