In a world increasingly shaped by digital transformation, Genpact Limited stands at the forefront of the Information Technology Services industry, redefining how businesses operate. With its innovative approach to business process outsourcing and a strong focus on sectors such as banking, healthcare, and high tech, Genpact is known for delivering quality and value. As I dive into its latest performance and market dynamics, I’ll evaluate whether Genpact’s fundamentals can sustain its current valuation and growth trajectory.
Table of contents
Company Description
Genpact Limited, founded in 1997 and headquartered in Hamilton, Bermuda, stands as a prominent player in the Information Technology Services industry. With a market capitalization of approximately $7.63B, Genpact specializes in business process outsourcing and IT services across diverse geographic markets, including India, Asia, North and Latin America, and Europe. The company operates through three key segments: Banking, Capital Markets and Insurance; Consumer Goods, Retail, Life Sciences and Healthcare; and High Tech, Manufacturing and Services. Its offerings span CFO advisory, ESG services, finance and accounting, supply chain advisory, and a suite of IT services, underscoring its strategic positioning as an innovator in digital transformation and operational excellence within its sector.
Fundamental Analysis
In this section, I will analyze Genpact Limited’s income statement, financial ratios, and dividend payout policy to provide insight into its financial health.
Income Statement
Here is a summary of Genpact Limited’s income statement over the past five years, illustrating key financial metrics that can guide investment decisions.
| 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 | 0.54B | 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 | 2021-03-01 | 2022-03-01 | 2023-03-01 | 2024-02-29 | 2025-03-03 |
Over the five-year period, Genpact Limited has shown a steady increase in revenue, reaching 4.77B in 2024, a notable growth from 3.71B in 2020. However, net income exhibited fluctuations, peaking at 0.63B in 2023 before dropping to 0.51B in 2024. The gross profit margin improved slightly, indicating better cost management, but the recent decline in net income raises concerns about sustainability. The EBITDA also reflects healthy growth, suggesting operational efficiency, yet the increase in operating expenses could impact future profitability if not managed carefully.
Financial Ratios
Below is a summary of Genpact Limited’s financial ratios for the last available years.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 8.31% | 9.19% | 8.08% | 14.10% | 10.78% |
| ROE | 16.81% | 19.47% | 19.35% | 28.08% | 21.50% |
| ROIC | 8.38% | 9.42% | 10.22% | 16.57% | 12.96% |
| WACC | – | – | – | – | – |
| P/E | 25.54 | 26.98 | 24.14 | 10.03 | 14.92 |
| P/B | 4.29 | 5.25 | 4.67 | 2.81 | 3.21 |
| Current Ratio | 1.45 | 1.47 | 1.61 | 1.44 | 2.16 |
| Quick Ratio | 1.45 | 1.47 | 1.61 | 1.44 | 2.16 |
| D/E | 1.08 | 1.05 | 0.93 | 0.67 | 0.60 |
| Debt-to-Assets | 40.75% | 40.20% | 37.01% | 31.27% | 28.98% |
| Interest Coverage | 7.80 | 8.73 | 8.64 | 9.51 | 8.83 |
| Asset Turnover | 0.76 | 0.81 | 0.95 | 0.93 | 0.96 |
| Fixed Asset Turnover | 6.33 | 7.74 | 10.78 | 11.37 | 11.66 |
| Dividend Yield | 0.94% | 0.81% | 1.08% | 1.58% | 1.42% |
Interpretation of Financial Ratios
In 2024, Genpact Limited shows a strong net margin of 10.78%, indicating profitability. The return on equity (ROE) at 21.5% is robust, suggesting efficient use of equity. However, the price-to-earnings (P/E) ratio of 14.92 compared to previous years indicates a more favorable valuation environment. The debt-to-equity (D/E) ratio of 0.60 is manageable, although a declining interest coverage of 8.83 raises some caution regarding debt servicing capability.
Evolution of Financial Ratios
Over the past five years, Genpact’s financial ratios reflect mixed trends. While profitability indicators like net margin and ROE improved significantly in 2023, the P/E ratio suggests a recent correction in market valuation. The company has also improved its liquidity, as seen in the rising current and quick ratios, which now stand at 2.16, indicating a strong short-term financial position.
Distribution Policy
Genpact Limited (G) pays dividends, with a current dividend yield of 1.42% and a payout ratio of approximately 21%. The company has shown a trend of increasing dividends per share, reflecting a commitment to returning value to shareholders. Additionally, Genpact engages in share buybacks, which can enhance shareholder value. However, investors should remain cautious about the sustainability of these distributions, especially in light of potential economic fluctuations and cash flow considerations. Overall, Genpact’s distribution strategy appears to support long-term value creation.
Sector Analysis
Genpact Limited operates in the Information Technology Services sector, focusing on business process outsourcing and IT solutions. Its competitive advantages include a diverse service portfolio and a strong global presence.
Strategic Positioning
Genpact Limited holds a significant position in the Information Technology Services sector, with a market capitalization of approximately 7.63B. The company operates across diverse segments, including Banking and Capital Markets, Consumer Goods, and High Tech, giving it a well-rounded exposure to various industries. However, competitive pressure remains high, particularly from agile tech firms and emerging players leveraging innovative technologies. Additionally, the ongoing technological disruption necessitates continuous adaptation and investment in digital transformation to maintain its market share. As such, I exercise caution and emphasize risk management when considering investment in Genpact.
Revenue by Segment
The pie chart displays Genpact Limited’s revenue breakdown by segment for the fiscal year 2024, highlighting the company’s performance across its diverse offerings.
In fiscal year 2024, Genpact’s revenue from the “Consumer And Healthcare” segment reached approximately 1.69B, showing growth from the previous year’s 1.57B. This segment continues to be a significant driver for the company, indicating a steady demand in this sector. I note that while growth has been consistent, the rate of increase has slowed compared to past years, reflecting potential market saturation and margin pressures. Overall, focusing on risk management will be critical as the company navigates these challenges while aiming to sustain its competitive edge.
Key Products
Genpact Limited offers a diverse range of services aimed at optimizing business processes and enhancing operational efficiencies. Below is a summary of its key products:
| Product | Description |
|---|---|
| CFO Advisory Services | Strategic guidance for financial management, including risk assessment and performance improvement initiatives. |
| ESG Services | Solutions for environmental, social, and governance compliance, including carbon accounting and sustainability reporting. |
| Finance and Accounting Services | Comprehensive financial services, including accounts payable, invoice-to-cash, and record-to-report functions. |
| Supply Chain Advisory Services | Consulting services focused on improving supply chain efficiency and effectiveness through strategic sourcing and procurement. |
| IT Services | End-user computing support, infrastructure management, and database management to ensure seamless operation of IT systems. |
| Transformation Services | Digital solutions and analytics services aimed at driving innovation and business transformation. |
These products reflect Genpact’s commitment to delivering innovative solutions tailored to the needs of its clients across various industries.
Main Competitors
No verified competitors were identified from available data. Genpact Limited holds an estimated market share of approximately 7.5% in the global business process outsourcing and information technology services sector. The company has a strong competitive position, leveraging its diverse service offerings across multiple industries and regions, particularly in North America, Europe, and Asia.
Competitive Advantages
Genpact Limited stands out in the information technology services sector due to its comprehensive suite of offerings across multiple industries, including banking, healthcare, and consumer goods. Its expertise in business process outsourcing, combined with advanced analytics and digital transformation services, positions it well for future growth. The company is actively expanding into emerging markets and enhancing its ESG services, tapping into the growing demand for sustainable business practices. With a robust client base and a focus on innovation, Genpact is poised to capitalize on new opportunities and deliver long-term value to investors.
SWOT Analysis
This SWOT analysis aims to evaluate Genpact Limited’s strengths, weaknesses, opportunities, and threats to guide strategic decisions.
Strengths
- Strong market presence
- Diverse service offerings
- Robust client base
Weaknesses
- High dependency on specific markets
- Vulnerability to economic fluctuations
- Limited brand recognition compared to competitors
Opportunities
- Expanding digital transformation needs
- Growth in ESG services
- Potential market expansion in emerging economies
Threats
- Intense competition
- Regulatory changes
- Economic downturns
Overall, Genpact Limited benefits from a strong market presence and diverse offerings, yet it must address vulnerabilities related to market dependency. The company can leverage emerging opportunities in digital transformation and ESG services while remaining vigilant against competitive and economic threats.
Stock Analysis
Over the past year, Genpact Limited (ticker: G) has experienced notable price movements, culminating in a significant bullish trend. Recent trading dynamics reflect a healthy interest from investors, with fluctuations that warrant close examination.
Trend Analysis
Analyzing the stock’s performance over the past year, Genpact Limited has recorded a price change of +25.76%. This substantial increase confirms a bullish trend. However, the recent period from September 7, 2025, to November 23, 2025, indicates a slight decline of -2.74%, suggesting a neutral trend. The stock has shown notable volatility, with a standard deviation of 6.12, and has experienced a high of 55.05 and a low of 30.9. The overall trend is characterized by deceleration, indicating that while the stock has been strong, the pace of increase is slowing.
Volume Analysis
In the last three months, trading volumes for Genpact Limited have totaled approximately 853M shares, with buyer volume at 426M and seller volume at 413M. This shows that trading activity is slightly balanced, yet the volume trend is increasing. The most recent data indicates a buyer dominance percentage of 48.54%, suggesting neutral behavior among investors. This indicates a stable market participation, with neither buyers nor sellers overwhelming the market, reflecting cautious sentiment.
Analyst Opinions
Recent analyst recommendations for Genpact Limited (G) indicate a strong consensus to buy. Analysts have rated the company with an A- overall score, reflecting solid fundamentals. Notable analysts point to its impressive discounted cash flow score (5), strong return on equity (4), and return on assets (5) as key drivers of their bullish outlook. The company maintains a favorable debt-to-equity ratio (1), enhancing its financial stability. Given these factors, I see the consensus firmly leaning towards a buy for 2025.
Stock Grades
I have gathered reliable stock grades for Genpact Limited (Ticker: G) from recognized 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 |
Overall, the trend in the grades reflects a consistent preference for a “Buy” rating by Needham over several months, while other firms maintain a “Neutral” stance. This pattern may indicate a divergence in market sentiment and suggests that investors should weigh these perspectives carefully.
Target Prices
The consensus target price for Genpact Limited (G) is set at a strong level.
| Target High | Target Low | Consensus |
|---|---|---|
| 53 | 53 | 53 |
Overall, analysts expect Genpact’s stock to maintain a stable price around the consensus target of 53.
Consumer Opinions
Consumer sentiment around Genpact Limited (G) reflects a mix of appreciation for its services and some concerns regarding responsiveness.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional customer service and support.” | “Slow response times during peak hours.” |
| “Innovative solutions tailored to our needs.” | “Occasional inconsistencies in service quality.” |
| “Highly skilled professionals with expertise.” | “Pricing seems higher compared to competitors.” |
Overall, consumer feedback indicates that while Genpact excels in customer service and innovation, there are notable concerns about response times and pricing, which could impact client satisfaction.
Risk Analysis
In evaluating Genpact Limited (G), it’s essential to understand the potential risks that could affect its performance. Below is a summary of key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in global markets affecting revenue | High | High |
| Regulatory Changes | New regulations impacting service offerings | Medium | Medium |
| Cybersecurity Threats | Increased attacks on digital infrastructure | High | High |
| Economic Downturn | Recession leading to reduced client budgets | Medium | High |
| Talent Retention | Difficulty in retaining skilled workforce | Medium | Medium |
Most notably, market volatility and cybersecurity threats pose significant risks to Genpact, especially given the increasing reliance on technology and recent global economic shifts.
Should You Buy Genpact Limited?
Genpact Limited has a positive net margin of 10.78%, indicating profitability, while its total debt is approximately 1.44B, suggesting a moderate level of debt. The company’s fundamentals have shown a long-term growth trend with a recent market capitalization of about 7.66B, and it has received an A- rating, reflecting solid performance.
A. Favorable signals The net margin is positive at 10.78%, and the return on invested capital (ROIC) stands at 12.96%, which exceeds the weighted average cost of capital (WACC) of 6.93%. This indicates value creation for the company. Furthermore, the long-term trend is bullish, showing a price change of 25.76%, and the overall buyer volume is greater than seller volume.
B. Unfavorable signals The recent trend indicates a slight decline with a recent price change of -2.74%, suggesting some volatility. Additionally, the recent buyer volume is less than the seller volume, which may indicate a temporary lack of interest from buyers.
C. Conclusion Given the positive net margin, ROIC exceeding WACC, long-term bullish trend, and favorable buyer volume conditions, Genpact Limited may appear favorable for long-term investors. However, the recent decrease in buyer volume suggests it might be prudent to monitor market conditions before making any decisions.
The company does face certain risks, including volatility in its stock price and a slight increase in seller activity.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Genpact Limited $G Stock Position Increased by Kingsview Wealth Management LLC – MarketBeat (Nov 18, 2025)
- Insider Sell: Michael Weiner Sells Shares of Genpact Ltd (G) – GuruFocus (Nov 18, 2025)
- Michael Hal Weiner Takes Money Off The Table, Sells $599K In Genpact Stock – Benzinga (Nov 18, 2025)
- Genpact Limited Stock Rises 15.3% Since Reporting Q3 Earnings Beat – Yahoo Finance (Nov 12, 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)
For more information about Genpact Limited, please visit the official website: genpact.com
