G
Genpact Limited
Industrial/Transportation, Finance/Real Estate
04/11/2013
Presented
| Date | 04/09/2013 |
| Price | $18.33 |
| Market Cap | $4.15B |
| Ent Value | $4.42B |
| P/E Ratio | 26x |
| Book Value | $5.88 |
| Div Yield | N/A |
| Shares O/S | 226.61M |
| Ave Daily Vol | 1,200,000 |
| Short Int | 0.21% |
Current
| Price | $39.33 |
| Market Cap | $7.01B |
| Genpact Limited provides business process outsourcing and information technology services worldwide. The company offers finance and accounting services that include accounts payable services comprising document management, invoice processing, approval, and resolution management solutions; order to cash services include customer master data management, credit and contract management, fulfillment, billing, collections, and dispute management services; record to report services consisting of reporting, treasury, tax, financial planning and analysis, and product cost accounting services; and enterprise risk and compliance services comprise risk, SOX advisory, enterprise risk management, internal audits, FCPA, and IT risk management services. It also provides analytics and research services; business consulting and enterprise risk consulting services; re-engineering services; and supply chain and procurement services, including direct and indirect sourcing and procurement, demand forecasting and management, engineering, inventory optimization and planning, fleet and logistics, and aftermarket services. In addition, the company offers enterprise application services comprising enterprise resource planning, supply chain management, financial management, and customer relationship management solutions, as well as testing, database administration, and architecture services; IT management services, including end user computing, IT infrastructure, database, security, and production support services; and collections and customer services in the areas of consumer finance, business to business collections, and mortgage services. It serves banking and financial services, insurance, capital markets, consumer product goods, life sciences, infrastructure, manufacturing and services, healthcare, and high tech industries. The company was founded in 1997 and is based in Hamilton, Bermuda. |
Highlights
The presenter is long shares of G, and believes the former business unit of General Electric (GE) is an excellent way to play the global business process outsourcing (BPO) trend. GE continues to be a significant client of G’s, but now only represents ~20%-25% of the company’s business (compared to 40% when G came public in 2007). While its GE business is growing at a single digit percentage rate, the remaining 75%+ of G’s business is growing rapidly (at a 20%+ pace); and, he believes it is very early on – i.e., “just the third inning” - in the overall adoption of BPO in the market, and sees upside potential for the stock to at least the mid-$20s over the next 12-18 months.
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