Genpact: A Spot of Bother, Perhaps?

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A most curious thing has transpired, you see. Nalanda India Equity Fund, a name that trips rather nicely off the tongue, has seen fit to acquire a further 1,015,556 shares in Genpact. A substantial sum, amounting to something in the neighborhood of $43.92 million, if one is inclined to count such things – and, naturally, someone always is. This little spree has rather boosted the fund’s holdings, bumping their total investment to a tidy $641 million, which, as it happens, constitutes the entirety of their reported assets. A rather all-in wager, wouldn’t you say? One imagines they’ve put all their eggs, as the saying goes, in the Genpact basket.

Now, Genpact itself is a concern engaged in the rather modern business of business process outsourcing, and all that. They handle the fiddly bits for other companies – the finance, the supply chains, the IT, the digital transformations – leaving their clients free to concentrate on the really important things, like deciding what colour the stationery should be. They’ve been doing rather well, actually, turning over a respectable $5.08 billion last year and netting a profit of $552.49 million. Not to be sneezed at, what!

The shares, however, have been having a bit of a wobble, falling a rather alarming 27.3% over the past twelve months. This, it seems, is due to a touch of the jitters regarding artificial intelligence. The market, in its infinite wisdom, appears to believe that robots will soon be doing all the fiddly bits themselves, rendering Genpact’s services surplus to requirements. A rather dramatic notion, if you ask me. As if a machine could possibly replicate the sheer, unadulterated efficiency of a well-organized human team. Utter poppycock!

But Nalanda, bless their optimistic souls, clearly sees things differently. They’ve evidently decided that the recent dip is a golden opportunity, a chance to acquire shares at a most agreeable price. And they may well be right. Genpact, despite the robotic rumblings, is still a perfectly sound concern. They finished 2025 with sales of $5.1 billion – a 7% increase, which is jolly good – and expect to maintain that growth in 2026. They’re even assisting businesses in navigating the very AI revolution that’s causing all the fuss. A bit like selling umbrellas during a thunderstorm, wouldn’t you say?

The result of all this is that Genpact’s price-to-earnings ratio has fallen to a mere 12 – the lowest it’s been in a year. A compelling level, indeed. It suggests that the market has rather overreacted, and that the shares are currently undervalued. Which, naturally, means that now is a rather opportune moment to acquire a few. One might even venture to suggest it’s a positively ripping investment.

Here’s a quick glance at the figures, for those inclined to pore over such things:

Metric Value
Revenue (TTM) $5.08 billion
Net income (TTM) $552.49 million
Dividend yield 1.74%
Price (as of market close 2/18/26) $39.18

In short, Genpact is a perfectly respectable company, providing perfectly useful services, and currently available at a perfectly agreeable price. One might even say it’s a bit of a steal. Though, naturally, one should always exercise caution when venturing into the world of high finance. After all, a chap never knows when a rogue algorithm might decide to wreak havoc.

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2026-02-20 23:23