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Abhishek    


Lucknow, India

I'm Abhishek, an equity research analyst with a bachelor's degree in Commerce from Kumon University and a Post - graduation in financial management from NMIMS with a strong desire for financial modeling. IMS Pro recently awarded me a Financial Modeling certificate, and I'm currently pursuing my CFA charter.

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Contributor since: 2022

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Capgemini Technology Services India Limited

Information technology (IT) and IT-enabled operations are the areas of expertise for Capgemini Technology Services India Limited, a public limited company with its headquarters located in India. The company offers software product development, BPO, and offshore outsourcing solutions to large and medium-sized businesses worldwide.


About Company :

Information technology services are offered by Capgemini Technology Services India Limited. The company provides engineering, testing, cybersecurity, and cloud services. Capgemini Technology Services India caters to global clients. With subsidiaries and branches thoughtfully placed, Capgemini operates in several nations, including Singapore, the United States of America, Germany, Belgium, Finland, South Korea, and Canada.

  (Price is considered Rs 11500 as of Feb 2024)
CIN ISIN Face Value
U85110PN1993PLC145950 NE177B01032 Rs 10
Total Outstanding Shares EPS of the share P/E of the share
5,92,71,296 Rs 535.64 21.46
Book Value P/B of the share Market Capitalization
Rs 3045.89 3.77 Rs 68000 crores(approx)

 

Products and Services

  1. Customized and Packaged Application Development
    Focuses on tailored applications and standard application packages to meet specific
    business requirements.
  2. Application Maintenance Outsourcing
    Providing support and maintenance for existing applications to ensure they remain
    efficient and up-to-date.
  3. Business Intelligence Services
    Empowering businesses to make informed decisions based on data analytics and
    insights.
  4. Application Re-Engineering
    Revamping and updating existing applications to improve performance and adapt to
    new technologies or business needs.
  5. Intelligent Products and Services
    Transitioning from traditional products to next-generation smart connected products
    and services.
  6. Capgemini's approach to services focuses on three main areas:
    Customer First: Prioritizing customer needs and experiences in digital
    transformations.
    Intelligent Industry: Implementing smart, connected solutions in industrial
    contexts.
    Enterprise Management: Digitalizing key management areas core to businesses.

Business Model 

  1. Service Offerings: Application development that is packaged and customized, application maintenance outsourcing, business intelligence services, and application re-engineering
  2. Client-Centric Approach: specific customer needs through the use of core competencies and customized delivery models.
  3. Technology Emphasis: Making use of developments in distributed databases, object-oriented programming, client/server architectures, networking, and communication technologies
  4. Diverse Portfolio: Cloud computing, customer-first strategies, cybersecurity, data and AI, enterprise management, intelligent industry, and sustainability are among the services offered.
  5. Global and Local Reach: Capgemini India With more than 100 local clients, the Business Unit focuses on the needs of the local market.
  6. Organizational Structure: The Projects & Consulting and Captives Transformation divisions of the India Business Unit serve both local and international brands in India.
  7. Strategic Partnerships and Expertise: Leader in the world for collaborating with businesses on management and business transformation
  8. Ethical and Sustainable Practices: commitment to sustainability and moral business conduct
  9. Innovation and Research Focus: funding for R&D through the Capgemini Research Institute and additional innovation projects
  10. Customer-First and Industry-Specific Solutions: covering a broad range of industries with industry-specific solutions, including banking, healthcare, aerospace, defense, and more. Managing operations and strategy in addition to design and strategy.

Industry Analysis 

  1. Adaptation to New Technologies: Exceptional ability to adjust to new technologies, particularly in data analytics, cloud computing, artificial intelligence, and digital transformation
  2. Client-Centric Approach: Receptive to the various needs of various industries, adapting strategies to fit particular trends in each.
  3. Talent Recruitment and Work Models: Capgemini is broadening its approach to talent acquisition, emphasizing hiring from Tier II and III Indian cities.
  4. European Market Strategy: In the European market, Capgemini has grown significantly, putting a major focus on offshoring.
  5. Global Career Opportunities: The company, which has a substantial presence in Europe, the UK, and the US, provides multicultural opportunities for consultants.
  6. Recognition in Generative AI and Engineering Services: Because of its significant contributions to the generative AI space, Capgemini has been named a Horizon 3 – Market Leader in HFS Horizons: Generative Enterprise Services 2023.
  7. Industry 4.0 and Experience Engineering: The company's competencies in Digital Engineering, Data & AI, Industry 4.0, and Experience
    Engineering has contributed to its leadership position in the industry.

 

Key Partnerships and Collaborations

  1. AWS Partner Awards: won numerous AWS Partner of the Year honors, demonstrating leadership in innovation and artificial intelligence worldwide
  2. Microsoft Partnership received multiple Microsoft Partner of the Year Awards in 2023, providing a solid track record of value delivery and partnerships.
  3. Google Cloud Partnership: won the 2023 Google Cloud Partner of the Year Awards, confirming their significant role as a Google Cloud partner.
  4. Quantum Computing Collaboration: Establish a lab for quantum computing in partnership with IBM to develop quantum applications utilizing the company's most recent 127-qubit quantum processor.

Capgemini acquired Aricent technologies

Capgemini acquired Altran Technologies, the parent company of Aricent Technologies, in 2020. This acquisition led to Aricent Technologies becoming a part of the Capgemini group. Aricent, known for providing communication software for the communications industry, was incorporated into Capgemini Engineering following the acquisition. This move enabled Capgemini to strengthen its capabilities in digital technologies and emerging fields like artificial intelligence and the Internet of Things (IoT). The merger of Aricent Technologies into Capgemini was executed as a share swap deal. According to the terms of the deal, for every 17 shares of Aricent Technologies, shareholders received 1 share of Capgemini Technology Services. This amalgamation was aimed at pooling resources for greater efficiency, reducing costs, and enhancing management focus and financial strength. Additionally, it wasseen as a strategic move to create more productive utilization of resources and achieve operational efficiencies beneficial for all stakeholders.

Recent NEWS

  1. Capgemini announced that it has signed a new agreement to become a Global Partner of the 37th America’s Cup, one of the most iconic and prestigious events in the global sporting calendar1.
  2. Capgemini enables improved efficiency and productivity for the Auto Club Group with modernized IT infrastructure1.
  3. Reports suggest that the Eco-digital economy is expected to double in the next five years to almost $33 trillion1.
  4. Capgemini and AWS expand strategic collaboration to enable broad enterprise generative AI adoption1.
  5. Capgemini Technology Services India, the local unit of the European technology major, has renewed its lease for more than 300,000 square feet of commercial office space in Kokapet, Hyderabad, spanning across two assets2.
  6. Ashwin Yardi, CEO, of Capgemini Technology Services India, discussed the lag between new tech and offshoring

 

Financials 

Financial Figures (INR in
million)
2022-23  2021-22
Revenue from operations  278,754 226,288
Other income 5,099 4,362
Total income (I) 283,853  230,650
Expenses    
Employee benefit expenses 202,684  163,492
Other expenses 31,040 25,840
Depreciation and
amortization expenses
9,830 8,755
Finance costs 566 759
Total expenses (II) 244,120 198,846
Profit before tax (I - II) 39,733 31,804
Tax expenses    
Current tax 9,244 9,268
Deferred tax (1,259) (534)
Total tax expenses 7,985  8,734
Profit for the year 31,748  23,070
Total other comprehensive
income/(loss), net of tax
562  (1,537)
Total comprehensive
income for the year
32,310 21,533

SWOT Analysis

Strengths: Technology Proficiency, Strong European, Presence Solid Leadership and Values Large Workforce Domain Expertise Strong Brand Portfolio

Weaknesses:  Reliance on Consulting, Limited Scope Beyond Core Business, Capgemini's marketing approach and positioning could be improved

Opportunities: Growth in Networking and Cloud Computing, Government Initiatives, Online Customer Base, Lower Inflation Rate

Threats:  Economic Challenges in Europe, Changing Consumer Behavior, Environmental Regulations, Competitive Market

Conclusion 

A prominent participant in the IT and IT-enabled services industry is Capgemini Technology Services India Limited, a division of the multinational Capgemini group. With a focus on offshore outsourcing,
With significant operational hubs in India, the company has a strong presence in major international markets like the USA, Germany, and Canada in addition to providing BPO and software product development services. Its capabilities in digital technologies and emerging fields like AI and IoT have been further strengthened with the acquisition of Aricent Technologies, a provider of communication software. The SWOT analysis of Capgemini identifies areas for improvement, such as a heavy reliance on consulting and difficulties expanding beyond its core IT business, but also highlights the company's strong technological expertise, significant European presence, and solid leadership.The company's technological foundations, such as cloud computing and cybersecurity, support its customer-centric solutions, intelligent industry applications, and effective enterprise management strategy, which keeps it at the forefront of the rapidly evolving IT sector. Capgemini is well-positioned for sustained growth and innovation despite facing economic challenges and competitive pressures, particularly in Europe, thanks to its global-local reach and comprehensive service offerings.
 

Disclosure:

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.

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