A bullish thesis on Genpact Limited argues the stock is an overlooked value opportunity trading at a significant discount to its intrinsic worth. The company posted $5.08 billion in revenue for fiscal 2025, up 6.6% year-over-year, while diluted EPS rose 9.8% to $3.13 and adjusted EPS climbed 11.3% to $3.65. With a return on invested capital of 13.7% versus a cost of capital near 6.6%, a debt-to-equity ratio that has fallen to 0.23 from 1.05 in 2021, and free cash flow of roughly $566 million, the business is valued at only about 10.3 times free cash flow. The thesis highlights a disconnect between the market's view of Genpact as a traditional outsourcing firm vulnerable to AI and its evolution into an AI-enabled transformation partner, where Advanced Technology Solutions revenue grew 17% and now makes up 24% of total revenue, backed by a record $5.5 billion bookings backlog and more than 400 deployed generative AI solutions. Valuation models suggest intrinsic value between $40 and $65 per share, implying potential upside of roughly 30% to more than 90% from the $34 level.
Genpact LimitedBullish thesis argues stock is undervalued with 30-90% upside based on financials and AI transformation
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