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Capgemini Technology Service

₹13,500.00

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ISIN

Face Value

Total Share

INE177B01016

₹10.00

5,91,39,500

Total Income

Profit A몭er Tax

Promoter Holding

₹18,045.80

₹1,690.10

99.77 %

EPS

P/E

P/B

₹285.21

47.33

6.34

Market Capitalisation

Enterprise Value

Book Value

₹79,838.32 Cr

₹67,866.79 Cr

₹2,130.39

Intrinsic Value

Earnings Yield

Sector

₹11,478.41

2.11 %

Information Technolo…

Sub­sector

Category

Cashflow ­ Operations

IT Services & Consulti…

Growth Phase

₹3,403.80

Cashflow ­ Financing

­₹438.70


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Capgemini Growth Compounded Sales Growth 14.58% 1 Year

Compounded Profit Growth 2.00% 1 Year

Return On Equity 13.41% 1 Year

Pro Only

10.87% 3 Year

10.13% 5 Year

Pro Only

5.85% 3 Year

­4.79% 5 Year

Pro Only

15.55% 3 Year

20.71% 4 Year

About Capgemini Capgemini Capgemini Technology Services India Limited provides information technology (IT) and IT­enabled operations, o몭shore outsourcing solutions, and business process outsourcing services to large and medium­ sized organizations. It provides customized and packaged application development, application maintenance outsourcing, business intelligence services and application re­engineering through large o몭shore development centers in Bengaluru, Chennai, Pune, Mumbai and Hyderabad. Capgemini Technology Services India Limited (CTSIL) formerly known as IGATE Global Solutions Limited was on incorporated on 27 December 1993. The organization consists of 290,000 team members and operates in nearly 50 countries. It has operations in India, Europe, the United States, and internationally. Capgemini Technology Services India Limited is a public limited Company incorporated under the Indian Companies Act, 1956 having its registered o몭ice in Pune.

Capgemini IPO Details Currently there is no news for Capgemini Technology Services IPO.


Capgemini Merger & Acquisition Merger In line with the Capgemini Group’s overall business strategy, two Schemes of Amalgamation have been filed with NCLT to amalgamate its wholly owned subsidiaries: IGATE Infrastructure Management Services Limited with the Company Liquidhub India Private Limited and, Liquidhub Analytics Private Limited

Acquisition Capgemini SE acquired Altran Technologies SAS (formerly known as Altran Technologies SA) (the former Ultimate Parent company of Aricent) at a global level in the first half of the calendar year 2020. Pursuant to the acquisition, all the Altran group companies, including Aricent Technologies (Holdings) Ltd., are now a part of the Capgemini group. The company acquired 10,000 shares in Solcen Technologies Private Limited (STPL) as per agreement dated 21 October 2020 at INR 53,584.89 per share. With this acquisition the company holds 100% shares of STPL.

Capgemini Subsidiaries

Capgemini Business Model

Annik Inc., USA

Annik Inc, USA provides solutions from

Dalian Liquidhub Consulting Services Ltd

Market Research and Data Collection,

Company

Social

Annik UK Limited

Advanced Analytics and Visual Analytics. It

Liquidhub Pte. Ltd.

is now known as LiquidHub Analytics.

Solcen Technologies Pvt Ltd

Dalian Liquidhub Consulting Services

Aricent Technologies (Holdings) Ltd

Limited

Listening,

Company,

Data

Integration,

(China

region),

subsidiary of the Company is liquidated with e몭ect from 15 October 2020. Annik UK LTD has filed for liquidation on 17 December 2019. However, same is pending subject to approvals from authorities and the entity is legally active as on 31 March 2021. Liquidhub Pte. Ltd. is engaged in providing


so몭ware development and other related information technology support services to its customers. SolCen Technologies was formed to create technology solutions that enable the next generation of ERP, Testing, Business Analytics, Middleware and Apps. It is a market leader in IT industry for luxury. Aricent

Technologies

Holdings

Ltd.

provides communication so몭ware for the communications industry. The Company o몭ers

middleware,

enterprise

consumer

applications,

and

network

management, service provisioning, and billing mediation.

Capgemini Revenue Segmentation

 Revenue from so몭ware

 Revenue from sale of

operations

products

Capgemini Product & Services

Capgemini Assets

Artificial Intelligence

The company owns buildings worth INR

Business operations

1541 Cr.

Cloud services

The company owns computers worth INR

Cybersecurity services

384 Cr.


Digital Services

The company owns o몭ice equipment worth

Intelligent industry

INR 342 Cr as well as furniture and fittings

Technology solutions

worth INR 292 Cr.

Transformation and Innovation

Capgemini Industry Overview Industry Statistics The information technology (IT) sector is comprised of companies that produce so몭ware, hardware or semiconductor equipment, or companies that provide internet or related services. The IT and ITES industries comprises of majorly four segments­ IT services, business process management (BPM), so몭ware products and engineering services, and hardware. As per a report by McKinsey & Company, the Indian tech industry is valued at US $194 billion and has registered 7.5% growth rate over the last five years. The growth of IT and services sector in India is attributable to low cost of operation and tax advantages, availability of technically skilled manpower, rapid introduction of IT technologies in major sectors such as telecom, BFSI and more, adoption of new technologies like cloud computing, artificial Intelligence, Big Data, and strong growth in export demand. Regulations in Industry ­ The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 mandates a three tier grievance redressal system and more transparency regarding the content moderation process on social media platforms. The government had introduced the IT Rules 2021 in February and companies were given three months to fulfil all requirements. The Information Technology Act, 2000 is the primary legislation in the country that governs all digital technology related matters. It covers the vast ambit of web content to privacy and more. IT and services companies like Infosys, Tech Mahindra, Tata Consultancy Services, Mphasis, Cognizant etc are key competitors of the company.

Future Prospects India is the world's most popular outsourcing destination for IT companies. A몭er demonstrating its ability to deliver both on­shore and o몭­shore services to global clients, evolving technologies now open up a whole new world of possibilities for India's top IT enterprises. By 2025, the industry is anticipated to be worth US$ 350 billion.


anticipated to be worth US$ 350 billion. In 2020, the IT industry contributed for 8% of India's GDP. The Indian IT industry is predicted to grow by 1.9 percent in FY21, reaching US$ 150 billion in exports. Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra are diversifying their o몭erings and showcasing leading ideas in blockchain and artificial intelligence to clients using innovation hubs and research and development centers to create di몭erentiated o몭erings which is a segment where the company can look to expand.

Government Initiatives India’s Ministry of Home A몭airs and the National Critical Information Infrastructure Protection Centre are working on a new national strategy to strengthen the country’s cyber security amid allegations that Chinese intrusions may have a몭ected operations at a key stock exchange and supply of electricity in Mumbai. In Budget 2021, the government has allocated INR 53,108 Cr. to the IT sector. Department of Telecom, Government of India and Ministry of Communications, Government of Japan signed a MoU to enhance cooperation in areas of 5G technologies, telecom security and submarine optical fiber cable system. In 2020, the government released “Simplified Other Service Provider” (OSP) guidelines to improve the ease of doing business in the IT Industry, Business Process Outsourcing (BPO) and IT­enabled Services.

Capgemini Awards & Achievements Capgemini has been designated as a leader in Guidewire IT services in Everest Group’s recently released report entitled “Guidewire Services PEAK Matrix Assessment 2020. Capgemini has been named a Leader and Star Performer in Banking and Financial Services (BFS) risk and compliance IT services in the just released Everest Group PEAK Matrix 2020. Capgemini was recognized by Pegasystems Inc. with two 2020 Pega Partner Awards at the annual PegaWorld iNspire conference marking ninth consecutive year of Pegasystems awards for the company. Capgemini was awarded the ‘2019 Global Company of the Year’ award by Frost & Sullivan, for being a leading provider in the market for So몭ware Testing solutions. Capgemini was positioned as a Leader in Gartner’s 2020 “Magic Quadrant for Public Cloud Infrastructure Professional and Managed Services, Worldwide”.

Capgemini Strengths

Capgemini Shortcomings The company's has heavy cash and cash


Total revenue of the company has increased by 15% in FY'21 over FY20. This growth in revenue is attributable to the increase in revenue from time and material contracts as a result of rapid introduction of IT technologies in major sectors such as telecom, BFSI and more.

The company's has heavy cash and cash equivalents positions in FY'21 amount to INR 910 Cr. Considering that the company's profitability is declining constantly, they should look to invest their funds in areas where they can fetch higher returns and growth for the company.

The company has a strong liquidity and solvency position which is because of no borrowings taken by the company. Also the company's debt can be easily covered with the cash and cash equivalents they possess in FY'21. The company has strong growth in its cloud and digital business due to the adoption of new technologies like cloud computing, artificial Intelligence, Big Data, and strong growth in export demand, which is in line with the trend in the industry. The company was able to adapt to pandemic and take business continuity measures by scaling up their IT infrastructure, increasing bandwidth,

internet

capacity

and

strengthening VPN capacity.

Capgemini Opportunities In

2020,

the

government

Capgemini Threats released

The company faces a tough competition

“Simplified Other Service Provider” (OSP)

from other well­established names like Tata

guidelines to improve the ease of doing

Consultancy

business in the IT Industry, Business Process

Cognizant, Tech Mahindra and Accenture.

Outsourcing (BPO) and IT­enabled Services.

The company has seen a constant growth in

The next wave of demand for skills in

revenue yet the company's profit growth for

technologies like 5G and edge computing is

the past five years is negative as on 31st

likely to increase which is a field that the

March, 2021.

company can diversify into. Blockchain and artificial intelligence are also upcoming trends in IT sector where the

services,

Wipro,

Infosys,


upcoming trends in IT sector where the company should look to diversify in the future.

Capgemini Rating

RECOMMENDATION Strong Buy

Capgemini Detail Info Industry Statistics PUBLIC LIMITED Registered In India Registered Date 27/12/1993 Planify Ticker CAPG Reg O몭ice: No. 14, Rajiv Gandhi Infotech Park, Hinjawadi Phase­III, MIDC­SEZ, Village Man, Taluka Mulshi, Pune­411 057, Maharashtra Website: http://www.capgemini.com/in­en

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Planify Consultancy India Pvt. Ltd Planify Capital Limited SEBI Registration ­ NSE:AP2815021843(CM Segment), AP2815021843(FO Segment), MCX:AP144517 Mutual Fund License No. ARN­164419 , IRDA Code: ABLIC1003123454, ABLIC1003131639

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