{ "docId": "019dd923-5e88-73ef-bd58-5c47e8ed91e4", "docSlug": "4472f90eab8551b9", "documentTitle": "ey connecting the dots m a deals in technology services in 2024", "authorId": "MorganStanley", "authorName": "EY", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "equity_research", "sourceTypeLabel": "Equity research", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.778, "pageNumber": 8, "pageCount": 11, "prevPage": 7, "nextPage": 9, "slideType": "data_table", "function": "analyze_data", "density": "overcrowded", "nDataPoints": 40, "notes": "The slide uses a matrix-like structure to compare valuation multiples and growth rates across different market segments and time horizons.", "elementsJson": [ "data_table", "callout_box" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd58-5c47e8ed91e4/8", "deckHref": "/decks/019dd923-5e88-73ef-bd58-5c47e8ed91e4", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd58-5c47e8ed91e4.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd58-5c47e8ed91e4#slide-8", "components": [ { "bbox": null, "kind": "callout", "text": "Globally listed companies reverted to the pre-COVID levels in 2024 despite a weaker macro environment with uncertainty around IT spending trends for NTM and recovery of discretionary spends.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-3408-77db-b479-da22d29c1a64", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "EV/EBITDA: 54.7x", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-3408-77db-b479-dfa5ce2580fe", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.3, "x": 0.67, "y": 0.75 }, "kind": "paragraph", "text": "Digital native players' market performance has been volatile - weakened during H1 before recovering in H2.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "169bb04f-7f74-43fb-b8b0-138105640a09", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.3, "x": 0.67, "y": 0.35 }, "kind": "paragraph", "text": "India listed companies have benefited from unprecedented domestic market liquidity. Valuations have notched up beyond 2023 levels and remain elevated above pre-COVID levels.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "300230e0-8c46-42dc-a1e2-a20fe823c9ba", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.3, "x": 0.67, "y": 0.55 }, "kind": "paragraph", "text": "Driven by more balanced portfolio of offering and structural cost advantage, Indian MSC growth profile has surpassed digital natives' for the last two to three years.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3ad63e57-6cb4-4299-abae-e88c7746c96b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.3, "x": 0.67, "y": 0.15 }, "kind": "paragraph", "text": "Globally listed companies reverted to the pre-COVID levels in 2024 despite a weaker macro environment with uncertainty around IT spending trends for NTM and recovery of discretionary spends.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a60f0481-c639-47ff-820a-e637972c677f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.88 }, "kind": "source-note", "text": "Source: MergerMarket, Cap IQ, EY research and analysis. Note: Large Cap - India: TCS, Infosys, Wipro, HCL, TechM, LTIMindtree for Dec'24 period; Large Cap - Global: Accenture, Capgemini, Cognizant, IBM, EPAM, CGI; MSC - India: Coforge, Mphasis, Persistent, HappiestMinds, Sonata Software, Mastek, R Systems, LTIMindtree for all periods except Dec'24; MSC - Global: Perficient, Globant, Endava, Nagarro, Softcat, CI&T, ThoughtWorks, NetCompany for all periods except Dec'24; Digital Natives: EPAM, Endava, Globant, HappiestMinds, ThoughtWorks, Kainos, NetCompany for all periods except Dec'24; 1. Monthly average of quarter ending Dec for respective periods", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1c624a6c-ec39-4f3e-ae77-44a7c6a7a06f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.7, "w": 0.6, "x": 0.05, "y": 0.15 }, "kind": "table", "text": "Matrix of market segments (rows) vs time periods (columns) showing EV/EBITDA and Revenue Growth", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0d48666b-738b-4966-af58-a3f600ccc6a7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.85, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "Public market valuation: Growth, optimism and liquidity drive pockets of outperformance", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1d13deef-126e-4ec8-b98b-c9dded5bcd54", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Data Story Arc", "slug": "data-story-arc", "agent": "Storyteller", "layer": "slide", "matchId": "92eecc4a-9849-4635-bdab-80c75efcdddb", "evidence": "paragraph/paragraph: Globally listed companies reverted to the pre-COVID levels in 2024 despite a weaker macro environment with uncertainty around IT spending trends for NTM and recovery of discretionary spends.", "confidence": 0.7 }, { "name": "NxN matrix", "slug": "matrix-nxn", "agent": null, "layer": "slide", "matchId": "7ec0dea0-7afc-4e00-82dd-31c19bc445f5", "evidence": "table/data: Matrix of market segments (rows) vs time periods (columns) showing EV/EBITDA and Revenue Growth", "confidence": 0.7 } ], "frameworks": [], "arcBeats": [ { "to": 8, "from": 7, "beatId": "ca3a76f4-e359-491d-a825-2ef75f292086", "arcName": "Monroe's Motivated Sequence", "arcSlug": "monroes-sequence", "beatName": "Satisfaction", "beatSlug": "monroes-sequence-satisfaction", "evidence": "The data table and team bio provide a sense of satisfaction and credibility", "position": 3, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [ { "to": 8, "from": 2, "name": "Logic Chain", "slug": "01-logic-chain", "bestFor": "Skeptical audiences, controversial recommendations, rigorous analysis", "matchId": "bb9fc330-ed1f-498a-a21b-0c0d61529fc4", "evidence": "The sequence of slides logically connects the increase in deal value and volume to critical digitalization priorities", "position": 0, "objective": "To understand the rebound in deal activity and its drivers", "structure": "Premise 1 (Accepted truth) -> Premise 2 (Observed fact) -> Therefore... 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