Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Concentrix Corporation is a global provider of technology-infused Customer Experience (CX) solutions. The Company provides end-to-end capabilities, including CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services to clients. It offers its clients integrated solutions supporting the customer lifecycle; CX and user experience (UX) strategy and design; analytics and actionable insights.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

CNXC over the last five years has been in an upward trending momentum in its revenues and gross profits apart from FY2020 (due to Corona virus outbreak) but post the market saw recovery and the upward trend continued showing the reliability and strength of the business. Furthermore, an increase in profitability, along with efficient use of resources with cost control measures helped the company to have an consistently increasing free cash flow trend over the last five years.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~60.75% of the total shareholding, signifying concentrated shareholding. Fidelity Management & Research Company LLC and Silver Star Developments, Ltd are the biggest shareholders, holding the maximum stake in the company at ~13.63% and ~8.55%, respectively.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:  

 2.2 Insights of Q3FY22:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 3: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.

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