Capgemini Technology Services India Limited (formerly known as IGATE Global Solutions) is the Indian subsidiary of Capgemini SE, France, a global leader in consulting, technology, and digital transformation.
Brief History & Overview:
Capgemini entered India through acquisitions (Kanbay, IGATE) and gradually became one of the largest offshore delivery hubs for the group. It operates across application development, consulting, digital transformation, AI, and cloud solutions.
Business Model:
The company works primarily as the offshore IT & consulting arm of its parent. Services include IT services, application outsourcing, consulting, and BPO. India acts as the execution backbone, while revenues are largely generated from global clients.
Industry Positioning:
Within India’s IT services landscape, Capgemini stands alongside Infosys, Wipro, TCS, Cognizant, Accenture as a strong global IT vendor with significant market presence.
Revenue crossed ₹29,000 Cr in FY25 with consistent profitability.
Maintained double-digit margins (EBITDA ~16%, PAT ~12%) despite industry headwinds.
Dividend payout in FY25 led to higher financing outflows.
Strengthened digital capabilities with investments in AI, Cloud, and Cybersecurity centers.
Insight: Profitability is consistent, aided by strong cost management and efficient offshore delivery.
Insight: Company continues to be a strong free cash flow generator.
Insight: Debt-free operations with strong reserves highlight balance sheet strength.
Insight: Over 80% revenues come from Europe & America, highlighting global dependence.
Outlook: Global clients are focusing on cost optimization + digital transformation, supporting offshore demand.
Risks: Currency volatility, US/Europe slowdown, rising attrition in IT sector.
Strategy: Investment in AI, cloud computing, and cybersecurity to capture next-gen IT spending.
Insight: Strong promoter backing ensures stability and alignment with global strategy.
Insight: Though smaller in size, Capgemini trades at attractive valuations with comparable margins.
Market Cap (Unlisted): ~₹66,378 Cr
P/E Ratio: 17.96
P/B Ratio: 3.27
ROE: 18.22%
Debt to Equity: 0
Book Value per Share: ₹3,363
Insight: Attractive valuations with strong ROE and zero debt make Capgemini a stable unlisted investment.
Growth Opportunities: Rising global demand for AI, cloud, and digital consulting.
Management Guidance: Focus on cost optimization + new digital capabilities.
Industry Tailwinds: Global digital transformation spending remains strong.
Headwinds: Macroeconomic slowdown in US/Europe and pricing pressure.
Capgemini Technology Services India Ltd. is a debt-free, cash-generating IT services giant backed by strong promoter ownership. With steady margins, healthy ROE, and attractive valuations, it is well-suited for HNIs and long-term investors seeking stable returns in the Indian unlisted IT space.
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