Introduction:
Business Overview:
Genpact has more than 650 associates and 3,500 full time employees
serving businesses across USA, Europe, Australia and Asia from its
global locations in India, China, USA, Mexico and Hungary. A range of
customer end financial products including private label credit cards,
dual cards (PLCC with credit card functionality), retail finance, auto
finance, personal loans and mortgage are supported. The services
include finance and accounting, sales / marketing analytics, customer
services and financial services collections / operations.
Insurance:
Manufacturing:
Transportation:
Automotive:
WNS Holdings got listed on July 26, 2006. EXL Service got listed at
NASDAQ on October 20, 2006. Let us analyze the daily charts of these
two stocks, since these are Indian BPO companies listed in US.
We can see the “double top” formation in both the charts between mid
November 2006 and mid February 2007. This is a bearish sign. As a
result, both the stocks had almost fallen back to their opening price on
listing, which is a key support level. In both cases watch the “upward
gap” or the “rising window” nearly a month after listing; a “downward
gap” or “falling window” just after the first peak in case of EXLS and
after the second peak in case of WNS. These indicate nearly identical
demand supply gap scenario for both the stocks. EXLS is still bearish;
WNS has just begun an upmove and currently in second wave.
EXL Service
http://groups.google.com/group/theindiastreet/web/EXLS.JPG
WNS Holdings
http://groups.google.com/group/theindiastreet/web/WNS.JPG
As of now, the IPO details are being scrutinized by the SEC. Given the
technical scenario of both EXLS and WNS, Genpact may be a shaky
starter at NYSE. Another factor to be considered is the exchange rate.
An appreciating Indian Rupee, for example, may fetch lower revenues
in Indian currency; but the local expenditures, overheads and other
expenses may have to be met in local currency. This gives a distinct
disadvantage. However, going by the fundamentals, business model,
infrastructure, personnel and support services, Genpact is likely to
perform well in the long term.
SUNDARAMURTHY VADIVELU