Genpact: Steady Performer But Wait For A Wider Margin Of Safety

Summary

• Genpact's stock appreciated 25.83% since February 2024, outperforming the S&P 500, but the current price offers only a 5.41% margin of safety.
• Under new CEO Balkrishan Kalra, Genpact's 3+1 Execution Framework has driven significant revenue and earnings growth, particularly through Data-Tech-AI initiatives.
• The company raised its revenue and earnings guidance three times in 2024, reflecting strong performance and increased client engagement through strategic partnerships.
• Despite an improved fair value of $47.09, the current price of $44.67 suggests holding shares rather than buying due to a smaller margin of safety.

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Introduction

I last posted my research on Genpact (NYSE:G) in February 2024. My fair value assessment of the company then was $41.46. Shares are priced at $44.67 as of close on 13 December 2024, and traded up to $45.18 post-market. The stock price appreciated by 25.83% since

Analyst’s Disclosure:I/we have a beneficial long position in the shares of G either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.