Transforming the way businesses operate, Genpact Limited stands at the forefront of the Information Technology Services industry, redefining efficiency and innovation. With a robust portfolio that spans business process outsourcing and IT services, Genpact has carved a niche in sectors like banking, consumer goods, and healthcare. Renowned for its commitment to quality and sustainability, the company continues to push boundaries. As I delve into Genpact’s financial health and growth trajectory, I ponder whether its current market valuation reflects the true potential of its dynamic business model.
Table of contents
Company Description
Genpact Limited, founded in 1997 and headquartered in Hamilton, Bermuda, is a prominent player in the Information Technology Services sector. Specializing in business process outsourcing and IT services, Genpact operates across key markets in India, Asia, North America, Latin America, and Europe. The company is organized into three main segments: Banking, Capital Markets and Insurance; Consumer Goods, Retail, Life Sciences and Healthcare; and High Tech, Manufacturing and Services. With a workforce of approximately 145K employees, Genpact delivers a diverse range of services, including CFO advisory, ESG services, finance and accounting, supply chain advisory, and IT support. The company’s strategic focus on innovation and sustainability positions it as a leader in shaping the future of business process management.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Genpact Limited, focusing on the income statement, financial ratios, and dividend payout policy.
Income Statement
Below is the Income Statement for Genpact Limited, which provides insights into the company’s financial performance over the past five fiscal years.
| Income Statement Item | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 3.71B | 4.02B | 4.37B | 4.48B | 4.77B |
| Cost of Revenue | 2.42B | 2.59B | 2.83B | 2.91B | 3.08B |
| Operating Expenses | 0.85B | 0.92B | 1.03B | 0.94B | 0.99B |
| Gross Profit | 1.29B | 1.43B | 1.54B | 1.57B | 1.69B |
| EBITDA | 0.62B | 0.71B | 0.65B | 0.77B | 0.85B |
| EBIT | 0.46B | 0.54B | 0.52B | 0.67B | 0.76B |
| Interest Expense | 0.06B | 0.06B | 0.06B | 0.07B | 0.08B |
| Net Income | 0.31B | 0.37B | 0.35B | 0.63B | 0.51B |
| EPS | 1.62 | 1.97 | 1.92 | 3.46 | 2.88 |
| Filing Date | N/A | 2022-03-01 | 2023-03-01 | 2024-02-29 | 2025-03-03 |
Interpretation of Income Statement
Over the last five fiscal years, Genpact has demonstrated a consistent upward trend in revenue, rising from 3.71B in 2020 to 4.77B in 2024. However, Net Income peaked in 2023 at 0.63B before declining to 0.51B in 2024. This shift, alongside stable gross and operating margins, suggests increased costs impacted profitability. The company’s EBITDA margin improved in the latest year, indicating better operational efficiency despite the dip in net income. Investors should monitor how Genpact manages its expenses moving forward, as this will be crucial for maintaining profitability.
Financial Ratios
Here is a summary of the financial ratios for Genpact Limited over the last few years.
| Ratios | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Net Margin | 9.19% | 8.08% | 14.10% | 10.78% |
| ROE | 19.47% | 19.35% | 28.08% | 21.50% |
| ROIC | 9.42% | 10.22% | 16.57% | 12.96% |
| P/E | 26.98 | 24.14 | 10.03 | 14.92 |
| P/B | 5.25 | 4.67 | 2.81 | 3.21 |
| Current Ratio | 1.47 | 1.61 | 1.44 | 2.16 |
| Quick Ratio | 1.47 | 1.61 | 1.44 | 2.16 |
| D/E | 1.05 | 0.93 | 0.67 | 0.60 |
| Debt-to-Assets | 40.20% | 37.01% | 31.28% | 28.98% |
| Interest Coverage | 8.73 | 8.64 | 9.51 | 8.83 |
| Asset Turnover | 0.81 | 0.95 | 0.93 | 0.96 |
| Fixed Asset Turnover | 7.74 | 10.78 | 11.37 | 11.66 |
| Dividend Yield | 0.81% | 1.08% | 1.58% | 1.42% |
Interpretation of Financial Ratios
Analyzing Genpact Limited’s financial ratios for FY 2024 reveals a mixed performance. The liquidity ratios are strong, with a current ratio of 2.16 and a quick ratio of 2.16, indicating robust short-term financial health. However, the solvency ratio stands at 0.23, which raises concerns about long-term debt sustainability. Profitability metrics, including a net profit margin of 10.78% and an operating profit margin of 14.73%, show effective cost management. Efficiency ratios are favorable, with a receivables turnover of 3.87, indicating effective credit management. Nevertheless, the price-to-earnings ratio of 14.92 suggests the stock may be slightly overvalued given the current earnings growth outlook.
Evolution of Financial Ratios
Over the past five years, Genpact’s financial ratios have shown an upward trend in liquidity and profitability, indicating improved financial health. However, solvency ratios have fluctuated, suggesting ongoing challenges in managing long-term debt levels.
Distribution Policy
Genpact Limited (G) pays dividends, with a current annual dividend yield of approximately 1.42%. The dividend payout ratio stands at 21%, indicating a sustainable distribution relative to earnings. Over recent years, the dividend per share has shown a positive trend, supported by solid free cash flow. The company also engages in share buybacks, further enhancing shareholder value. Overall, these distribution strategies appear aligned with long-term value creation, though potential risks include fluctuations in profitability that may impact future payouts.
Sector Analysis
Genpact Limited operates in the Information Technology Services sector, providing business process outsourcing and IT services. Its competitive advantages include a diversified service offering and strong client relationships across multiple industries.
Strategic Positioning
Genpact Limited (G) holds a significant position in the Information Technology Services sector, with a market capitalization of approximately $8.11B. The company specializes in business process outsourcing and IT services, catering to various industries including banking, consumer goods, and healthcare. With competitive pressure intensifying from both established firms and emerging tech startups, Genpact’s innovative service offerings such as ESG consulting and finance automation are crucial to maintaining its market share. Additionally, the ongoing technological disruption in digital transformation presents both challenges and opportunities for growth, necessitating a proactive approach to sustain its competitive edge.
Revenue by Segment
The chart illustrates Genpact Limited’s revenue distribution across different business segments for the fiscal year 2024, highlighting the performance of each segment.
In FY 2024, Genpact generated $1.69B in the Consumer and Healthcare segment, showing an upward trend from $1.57B in FY 2023. This segment has consistently driven revenue, while the absence of data for other segments limits a broader analysis. Notably, the growth rate has slowed compared to previous years, suggesting potential margin pressure or increasing competition in the sector. Investors should remain cautious, focusing on how these trends may impact future earnings and market positioning.
Key Products
Genpact Limited offers a diverse range of products and services tailored to meet the needs of various industries. Below is a table summarizing their key offerings.
| Product | Description |
|---|---|
| CFO Advisory Services | Provides strategic financial guidance to organizations, focusing on optimizing financial operations and enhancing decision-making processes. |
| Environmental, Social, and Governance (ESG) Services | Includes data management, carbon accounting, human rights assessment, sustainability diligence, and ESG reporting to help companies align with global sustainability goals. |
| Finance and Accounting Services | Encompasses accounts payable, invoice-to-cash services, record to report services, financial planning and analysis, and enterprise risk and compliance services to streamline financial processes. |
| Supply Chain Advisory Services | Offers insights and strategies to improve supply chain efficiency, including sourcing and procurement services for both direct and indirect materials. |
| IT Services | Covers end-user computing support, infrastructure management, application production support, and database management services, ensuring robust IT operations. |
| Transformation Services | Focuses on digital solutions, consulting services, and analytics services to help businesses transform and adapt to changing market conditions. |
This comprehensive portfolio positions Genpact as a leader in the Information Technology Services sector, catering to various client needs across multiple industries.
Main Competitors
In the competitive landscape of the information technology services sector, Genpact Limited faces several notable competitors. Below is a summary of the main companies, sorted by market capitalization.
| Company | Market Cap |
|---|---|
| Genpact Limited | 8.11B |
| ExlService Holdings, Inc. | 6.59B |
| GDS Holdings Limited | 6.55B |
| Dolby Laboratories, Inc. | 6.42B |
| Cirrus Logic, Inc. | 6.32B |
| Kyndryl Holdings, Inc. | 6.06B |
| Waystar Holding Corp. | 5.95B |
| Arrow Electronics, Inc. | 5.79B |
| Ingram Micro Holding Corporation | 5.10B |
| Shift4 Payments, Inc. | 4.65B |
| Science Applications International Corp. | 4.63B |
The main competitors of Genpact operate primarily in the North American and global markets, providing a range of services that include business process outsourcing and IT solutions. Their market positions reflect a robust landscape of innovation and competition within the industry.
Competitive Advantages
Genpact Limited (G) distinguishes itself in the information technology services sector through its diverse service offerings and strong market presence. With a focus on business process outsourcing and IT services, Genpact serves a broad range of industries, including banking, healthcare, and consumer goods. The company’s commitment to environmental, social, and governance (ESG) services positions it well for future growth, as businesses increasingly prioritize sustainability. I foresee opportunities in expanding digital transformation services and entering emerging markets, which could enhance its competitive edge and drive long-term profitability.
SWOT Analysis
The following SWOT analysis provides a clear overview of Genpact Limited’s strengths, weaknesses, opportunities, and threats, helping to inform strategic decisions.
Strengths
- Strong market presence in IT services
- Diverse service offerings across multiple sectors
- Established client relationships with major companies
Weaknesses
- Dependency on specific industries
- Vulnerability to economic downturns
- Slower growth in certain markets
Opportunities
- Expansion into emerging markets
- Increasing demand for digital transformation
- Growth in ESG service offerings
Threats
- Intense competition in the IT sector
- Regulatory changes impacting operations
- Economic instability affecting client budgets
Overall, Genpact Limited has a robust position in the market with diverse offerings. However, it must address its vulnerabilities and leverage opportunities in emerging markets and digital transformation to enhance its strategic positioning against competitive threats.
Stock Analysis
Over the past year, Genpact Limited (G) has exhibited significant price movements, culminating in a robust bullish trend characterized by a notable 33.25% increase in stock price.
Trend Analysis
Analyzing the stock’s performance over the past year, I note a substantial price change of +33.25%, indicating a bullish trend. This upward trajectory has shown acceleration in recent months, with the stock reaching a high of 55.05 and a low of 30.9. The standard deviation of 6.1 suggests a moderate level of volatility, which may influence trading strategies.
Volume Analysis
In the last three months, total trading volume has reached approximately 860.7M, with buyer-driven activity slightly outweighing seller-driven actions (429.3M vs. 422.5M). The volume trend is increasing, and in the most recent period, buyers accounted for 52.34% of transactions, indicating a neutral buyer behavior. This suggests a cautious yet optimistic investor sentiment, as participation in the stock remains active.
Analyst Opinions
Recent analyst recommendations for Genpact Limited (G) indicate a strong “Buy” consensus for the current year. Analysts praised the company’s robust financial metrics, particularly its high scores in return on equity (5) and return on assets (5), as noted by analysts from reputable firms. The overall score of 4 reflects confidence in Genpact’s growth potential, despite a moderate debt-to-equity score of 2. As I assess the market landscape, I align with the consensus, viewing Genpact as a solid addition to any investment portfolio.
Stock Grades
Here are the latest stock ratings for Genpact Limited (G) from reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2025-08-20 |
| Needham | Maintain | Buy | 2025-08-08 |
| Mizuho | Maintain | Neutral | 2025-07-01 |
| Needham | Maintain | Buy | 2025-06-30 |
| Baird | Maintain | Neutral | 2025-05-08 |
| Needham | Maintain | Buy | 2025-05-08 |
| Mizuho | Maintain | Neutral | 2025-02-10 |
| Needham | Maintain | Buy | 2025-02-07 |
| Jefferies | Upgrade | Buy | 2025-01-21 |
| Needham | Maintain | Buy | 2024-11-11 |
The overall trend in grades for Genpact Limited indicates a consistent preference from Needham for a “Buy” rating, while other firms have maintained a “Neutral” stance. This suggests a mixed sentiment among analysts, highlighting the importance of considering multiple perspectives before making investment decisions.
Target Prices
The target consensus for Genpact Limited (G) indicates a strong agreement among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 53 | 53 | 53 |
Overall, analysts expect Genpact Limited’s stock to maintain a target price of 53, reflecting a unified outlook on its performance.
Consumer Opinions
Consumer sentiment towards Genpact Limited showcases a mix of praise and criticism, reflecting diverse experiences among its clientele.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional customer service and support.” | “Service delivery often misses deadlines.” |
| “Innovative solutions that drive efficiency.” | “High pricing compared to competitors.” |
| “Strong expertise in industry-specific needs.” | “Limited transparency in project updates.” |
Overall, consumer feedback highlights Genpact’s strong customer service and innovative solutions as key strengths, while concerns about pricing and project timelines emerge as common weaknesses.
Risk Analysis
In evaluating Genpact Limited (G), it’s essential to consider the following risks that could impact its performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for outsourcing services | High | High |
| Regulatory Risk | Changes in data privacy laws affecting operations | Medium | High |
| Competition Risk | Increasing competition in the digital transformation sector | High | Medium |
| Economic Risk | Global economic downturn affecting client budgets | Medium | High |
| Technology Risk | Rapid technological changes requiring constant adaptation | High | Medium |
Synthesize risks: Given the current landscape, the most significant risks for Genpact include high market volatility and regulatory changes, especially in data privacy, which can profoundly impact operations and profitability.
Should You Buy Genpact Limited?
Genpact Limited has demonstrated a positive profitability trend with a net income of 514M for FY 2024, reflecting a net profit margin of 10.8%. The company appears to be creating value as its return on invested capital (ROIC) stands at 12.96%, which exceeds its weighted average cost of capital (WACC) of 6.89%. However, Genpact carries a significant total debt of 1.45B, leading to a debt-to-equity ratio of 0.173. The overall rating of “A” suggests solid fundamentals, indicating that the stock may be worth considering for your portfolio.
Favorable signals
The evaluation of Genpact Limited indicates several positive elements. The company demonstrates a favorable gross margin of 35.45%, a net margin of 10.78%, and an EBIT margin of 15.87%. Additionally, the gross profit growth stands at 7.6%, while EBIT growth is 13.13%, both of which are favorable. The return on equity is notably high at 21.5%, and the return on invested capital exceeds the weighted average cost of capital, suggesting value creation.
Unfavorable signals
Despite the favorable indicators, there are some unfavorable aspects to consider. The net margin growth has declined by 23.58%, and earnings per share (EPS) growth has also dropped by 16.42%. Furthermore, the price-to-book ratio of 3.21 is considered unfavorable in the current context.
Conclusion
Overall, the analysis presents a favorable income statement opinion and a favorable ratios evaluation for Genpact Limited. However, the recent decline in key growth metrics might signal caution. Given the recent seller volume slightly exceeds buyer volume, it may be prudent to wait for buyers to return before making any decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Kennedy Capital Management LLC Purchases New Shares in Genpact Limited $G – MarketBeat (Dec 05, 2025)
- Genpact: Digital Mix Rising, The Valuation Still Hasn’t Caught On (NYSE:G) – Seeking Alpha (Dec 03, 2025)
- Genpact (NYSE: G) wins Horizon 3 spot in HFS AI supply chains, $99 million saved – Stock Titan (Dec 04, 2025)
- Genpact Limited Announces Pricing of 4.950% Senior Notes due 2030 by Genpact UK Finco plc and Genpact USA, Inc. – PR Newswire (Nov 13, 2025)
- Genpact Limited $G Holdings Raised by New York State Common Retirement Fund – MarketBeat (Dec 05, 2025)
For more information about Genpact Limited, please visit the official website: genpact.com
