Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Capgemini has presented a mixed set of results for the first half of 2025.</li><li>The company has demonstrated resilience in a volatile economic environment, reporting revenue growth slightly above expectations, with H1 revenue reaching EUR 1.107 billion, a 0.2% increase year-on-year.</li><li>Bookings amounted to EUR 11.993 billion, representing a 2.1% year-on-year growth.</li></ul>

Capgemini has presented a mixed set of results for the first half of 2025.The company has demonstrated resilience in a volatile economic environment, reporting revenue growth slightly above expectations, with H1 revenue reaching EUR 1.107 billion, a 0.2% increase year-on-year.Bookings amounted to EUR 11.993 billion, representing a 2.1% year-on-year growth.

Capgemini’s Bold Growth Formula: Can Strategic Acquisitions & APAC Momentum Outpace the Competition?

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>Capgemini to acquire WNS for $76.50 per share in cash; deal implies a 28% premium to VWAP and aims to create a global leader in AI-powered intelligent operations.</li>
<li>WNS traded at a discount to peers pre-offer; Capgemini expects meaningful synergies (~$8.63/share NPV), justifying the 16x P/E takeout. No termination fee is disclosed publicly.</li>
<li>Interloper risk is modest; deal certainty is high. With a 3.83% gross spread (pre-market) and 8.15% annualized return, the arbitrage setup is attractive barring regulatory or shareholder surprises.</li>
</ul>


Capgemini to acquire WNS for $76.50 per share in cash; deal implies a 28% premium to VWAP and aims to create a global leader in AI-powered intelligent operations.
WNS traded at a discount to peers pre-offer; Capgemini expects meaningful synergies (~$8.63/share NPV), justifying the 16x P/E takeout. No termination fee is disclosed publicly.
Interloper risk is modest; deal certainty is high. With a 3.83% gross spread (pre-market) and 8.15% annualized return, the arbitrage setup is attractive barring regulatory or shareholder surprises.


Capgemini–WNS: A Strategic AI Play with Risk-Arb Clarity and Optionality

Owner and CEO, GR20 Research

Gregory Ramirez

Owner and CEO

Industry Research and Consulting Services

GR20 Research

GR20 Research provides industry research and consulting services

<ul>
<li>Q1 2025 performance showed stabilisation, with revenues beating expectations and bookings improving for a second consecutive quarter, although visibility for H2 remains low and growth may weaken again in Q2.   </li>
<li>Capgemini lags global peers in growth, mainly due to its revenue mix and high exposure to struggling sectors like European automotive, despite stable momentum and resilience in some industries.   </li>
<li>Strategic growth drivers include GenAI, defence, cybersecurity, and sovereignty, though GenAI has yet to materially impact revenues; and short-term gains may favour SaaS vendors over IT services firms.</li>
</ul>


Q1 2025 performance showed stabilisation, with revenues beating expectations and bookings improving for a second consecutive quarter, although visibility for H2 remains low and growth may weaken again in Q2.   
Capgemini lags global peers in growth, mainly due to its revenue mix and high exposure to struggling sectors like European automotive, despite stable momentum and resilience in some industries.   
Strategic growth drivers include GenAI, defence, cybersecurity, and sovereignty, though GenAI has yet to materially impact revenues; and short-term gains may favour SaaS vendors over IT services firms.


<ul><li>Capgemini's full-year 2024 results reflect a mixed performance against a backdrop of continued market challenges.</li><li>The company's revenues saw a decline of 2% at constant currency to EUR 22,096 million, evidencing the broader economic pressures and restrained client spending, especially in sectors like Manufacturing and regions such as France.</li><li>This drop was somewhat mitigated by resilience in segments such as Financial Services and Public Sector, and geographic improvement in North America, the U.K., Asia Pacific, and Latin America.</li></ul>

Capgemini's full-year 2024 results reflect a mixed performance against a backdrop of continued market challenges.The company's revenues saw a decline of 2% at constant currency to EUR 22,096 million, evidencing the broader economic pressures and restrained client spending, especially in sectors like Manufacturing and regions such as France.This drop was somewhat mitigated by resilience in segments such as Financial Services and Public Sector, and geographic improvement in North America, the U.K., Asia Pacific, and Latin America.

Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!

<ul>
<li>BPO provider WNS is reported exploring a potential sale after attracting acquisition interest. The company has a market capitalisation of USD 2.89bn and operates across various sectors.   </li>
<li>We deem Capgemini could afford to acquire WNS, but such a move may not align with its strategic focus, despite the diversification benefits that a hypothetical acquisition would offer.   </li>
<li>The rise of generative AI could transform BPO, but it remains unclear whether Capgemini will pursue acquisitions in BPO, given its past strategy of focusing on cloud, digital and engineering.</li>
</ul>


BPO provider WNS is reported exploring a potential sale after attracting acquisition interest. The company has a market capitalisation of USD 2.89bn and operates across various sectors.   
We deem Capgemini could afford to acquire WNS, but such a move may not align with its strategic focus, despite the diversification benefits that a hypothetical acquisition would offer.   
The rise of generative AI could transform BPO, but it remains unclear whether Capgemini will pursue acquisitions in BPO, given its past strategy of focusing on cloud, digital and engineering.


France

Capgemini offers information technology services. The Company provides mobile software solutions, business process management, outsourcing, cloud computing, finance, consulting, supply chain management, engineering, and other services. Capgemini serves aerospace, defense, automotive, health care, life science, telecom, media, and entertainment industries worldwide.

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Capgemini (CAP FP)

Capgemini’s Bold Growth Formula: Can Strategic Acquisitions & APAC Momentum Outpace the Competition?

Capgemini has presented a mixed set of results for the first half of 2025. The company has demonstrated resilience in a volatile economic...

Baptista Research

Capgemini–WNS: A Strategic AI Play with Risk-Arb Clarity and Optionality

Capgemini to acquire WNS in a $3.3B all-cash deal; solid synergies, high certainty, modest spread, and optionality on rival bids create a...

Jesus Rodriguez Aguilar

Capgemini (CAP FP): False Start?

Q1 2025 shows stabilisation for Capgemini, but growth lags global peers due to revenue mix and sector exposure. Strategic drivers include GenAI,...

Gregory Ramirez

Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!

Capgemini's full-year 2024 results reflect a mixed performance against a backdrop of continued market challenges. The company's revenues saw a...

Baptista Research

Capgemini (CAP FP): Back to BPO?

BPO provider WNS is reported exploring potential sale, with Capgemini possibly able to afford but unlikely to align strategically. GenAI reshapes...

Gregory Ramirez

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Capgemini’s Bold Growth Formula: Can Strategic Acquisitions & APAC Momentum Outpace the Competition?

Capgemini has presented a mixed set of results for the first half of 2025. The company has demonstrated resilience in a volatile economic...

Baptista Research

Capgemini–WNS: A Strategic AI Play with Risk-Arb Clarity and Optionality

Capgemini to acquire WNS in a $3.3B all-cash deal; solid synergies, high certainty, modest spread, and optionality on rival bids create a...

Jesus Rodriguez Aguilar

Capgemini (CAP FP): False Start?

​Q1 2025 shows stabilisation for Capgemini, but growth lags global peers due to revenue mix and sector exposure. Strategic drivers include GenAI,...

Gregory Ramirez

Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!

Capgemini's full-year 2024 results reflect a mixed performance against a backdrop of continued market challenges. The company's revenues saw a...

Baptista Research

Capgemini (CAP FP): Back to BPO?

​BPO provider WNS is reported exploring potential sale, with Capgemini possibly able to afford but unlikely to align strategically. GenAI reshapes...

Gregory Ramirez

Q1 2025 shows stabilisation for Capgemini, but growth lags global peers due to revenue mix and sector exposure. Strategic drivers include GenAI,...

BPO provider WNS is reported exploring potential sale, with Capgemini possibly able to afford but unlikely to align strategically. GenAI reshapes...