Capgemini Technology Services India, a subsidiary of the multinational information technology giant Capgemini SE, has been making waves in the Indian market despite not being listed locally. With a strong focus on IT services and a global presence, Capgemini share price in India’s performance raises questions about what sets it apart in the competitive landscape.
The Company Overview
Incorporating under the umbrella of Capgemini SE, Capgemini India caters primarily to medium and small businesses worldwide. The company operates offshore centers across major Indian cities, including Bangalore, Hyderabad, and Chennai. With subsidiaries like Annik Inc. USA and Aricent Technologies, Capgemini India extends its services in market research, data analytics, communication software, and network management.
Business & Financials
Capgemini India’s revenue streams stem from key markets like the Americas, Europe, and India. Despite facing stiff competition, the company has maintained a steady pace of growth, with revenue and profits growing at compound annual growth rates (CAGR) of 8.05% and 4.36%, respectively, over the past four years. However, its growth trajectory trails behind that of industry giants like TCS and Infosys.
Recent Mergers
In a bid to streamline operations, Capgemini India has undertaken recent mergers, absorbing subsidiaries like iGATE Infrastructure Management Services Limited and Liquidhub India Private Limited. These strategic moves are indicative of the company’s efforts to optimise its business structure and enhance efficiency.
Parent Company’s Performance
Although Capgemini India isn’t listed independently, insights into its performance can be gleaned from its parent company, Capgemini SE. With impressive revenue growth and an expanding operating margin, Capgemini share price robust performance mirrors the positive momentum observed in the Indian arm.
Growth Outlook
Capgemini SE’s ambitious growth objectives for 2022 signal a bullish outlook. The revised revenue growth target is 14% to 15% at constant currency. This optimistic forecast reflects the company’s confidence in capitalising on prevailing market opportunities and sustaining growth momentum.
Price & Valuations
Despite not being publicly listed, Capgemini India’s shares have witnessed a remarkable surge in value, outperforming many listed IT stocks. However, with valuations exceeding 40 times earnings, the stock appears relatively expensive compared to its listed counterparts. Investors may find value in Capgemini India’s superior growth prospects, especially on market corrections.
Conclusion
Capgemini India’s success story is a testament to its strategic vision, operational efficiency, and adaptability in the dynamic IT landscape. While its unlisted status may pose challenges in valuation and market accessibility, the company’s robust performance and promising growth outlook make it a compelling proposition for investors seeking exposure to the burgeoning IT sector.Stockify is your go-to platform for pre ipo share market. From real-time updates to expert analysis, Stockify provides comprehensive insights and tools to help you confidently navigate the financial markets.