Nalanda India Equity Fund has significantly increased its investment in Genpact Limited, acquiring an additional 1,015,556 shares valued at approximately $43.92 million. The transaction represents a notable institutional vote of confidence in the business process outsourcing and IT services provider, coming at a time when the stock has experienced substantial pressure over the past year.
Genpact's stock has declined 27.3% year-over-year, primarily due to investor concerns regarding artificial intelligence-driven job displacement and industry disruption. However, the company has demonstrated resilience in its financial performance, reporting 7% revenue growth in 2025 with management guidance indicating similar growth expectations for 2026. The company has positioned itself as a strategic partner for clients navigating AI adoption, potentially offsetting near-term technological headwinds.
Trading at a price-to-earnings ratio of 12, the stock has reached its lowest valuation level over the past 12 months. This metric, combined with Nalanda's increased stake, suggests some institutional investors may view current price levels as attractive relative to the company's growth trajectory and market positioning in the evolving AI landscape.