Coforge Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Coforge Ltd's recent management commentary underscores a commitment to operational stability despite governance challenges, with a reaffirmation of FY27 guidance and expectations for record large deal signings. The strategic pivot towards AI-driven services and the successful integration of Encora are positioned as key growth drivers, enhancing revenue potential and margin expansion. Vista's financial outlook reflects stable revenue growth and margins, supported by a robust order book and strong deal momentum. However, governance-related volatility poses execution risks that could impact investor sentiment. The IT services sector's improving pricing power and demand for digital transformation further bolster Coforge's growth trajectory. Over the next 12-24 months, key opportunities include scaling AI capabilities and deepening client relationships, while watchpoints include governance stability and potential margin pressures from rising operational costs
Why We Like This Stock
- Strong deal momentum and a record order book support revenue growth expectations
- Successful integration of Encora is expected to enhance margins and operational efficiency
- Strategic focus on AI-driven services positions Coforge to capitalize on increasing demand for digital transformation
Things To Watch Out For
- Governance challenges following board resignations may create execution risks and impact investor sentiment
- Potential margin pressures from rising operational costs could affect profitability
- Economic uncertainties may influence client budgets and spending on IT services
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,009 | 12,051 | 16,403 | 20,135 | 25,105 |
| Profit Before Tax (Cr.) | 1,069 | 1,275 | 2,229 | 2,992 | 3,709 |
| PBT Margin | 11.9% | 10.6% | 13.6% | 14.9% | 14.8% |
| Net Profit (Cr.) | 809 | 850 | 1,698 | 2,239 | 2,443 |
| Earnings Per Share | 17.6 | 16.4 | 33.8 | 44.5 | 55.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| JPMorgan | ▲ Buy | 1,850 | 29-Sep-2026 |
| Prabhudas Liladhar | ▲ Buy | 2,120 | 18-Sep-2026 |
| BofA | ▲ Buy | 2,275 | 15-Sep-2026 |
| Emkay Global | ▲ Buy | 2,000 | 15-Sep-2026 |
| Kotak Securities | ▲ Buy | 2,000 | 15-Sep-2026 |
| Motilal Oswal | ▲ Buy | 2,200 | 15-Sep-2026 |
| Nomura | ▲ Buy | 1,860 | 15-Sep-2026 |
| Nuvama | ▲ Buy | 2,350 | 11-Sep-2026 |
| CLSA | ▲ Outperform | 2,170 | 09-Sep-2026 |
| Jeffries | ▲ Buy | 2,040 | 01-Sep-2026 |
| UBS | ▲ Buy | 2,400 | 25-Aug-2026 |
| Axis Securities | ▲ Buy | 2,275 | 29-Jul-2026 |
| Choice Equity | ▲ Buy | 2,050 | 29-Jul-2026 |
| ICICI Securities | ▲ Buy | 1,950 | 29-Jul-2026 |
| IDBI Capital | ▲ Buy | 1,800 | 29-Jul-2026 |
| Moneycontrol | ▲ Overweight | nan | 29-Jul-2026 |
| Citigroup | ▼ Sell | 1,235 | 30-Jun-2026 |
| HSBC | ▲ Buy | 1,710 | 17-Jun-2026 |
| Morgan Stanley | ▲ Overweight | 1,500 | 17-Jun-2026 |
| BOB Capital Markets | ► Hold | 1,300 | 06-May-2026 |
| Elara Capital | ► Accumulate | 1,380 | 06-May-2026 |
Company Overview
Show Company Profile
Coforge Limited provides information technology (IT) and IT-enabled services in India, the Americas, Europe, the Middle East and Africa, India, and the Asia Pacific. The company offers Artificial intelligence services and platforms; and AI (artificial intelligence) and ML (machine learning) services, including predictive analytics, model risk management, and recommendation engine; intelligent automation solutions, such as enterprise and intelligent process automation, and smart application; data analytics solutions, such as data migration, cloud data engineering, master and meta data management, data quality management, data governance, self-service BI, descriptive and customer analytics, and workforce analytics; process consulting services. It also provides engineering services, such as digital and product engineering, legacy modernization, agile transformation, and enterprise integration; quality engineering services, including enterprise package assurance, data and intelligence, digital quality engineering, quality engineering lifecycle automation, and advisory; and in application development and maintenance, managed services, cloud computing, and business process outsourcing services. It serves banking and financial, travel, transportation, hospitality, insurance, healthcare, life science, retail, consumer goods, public sector, technology, telecom, media, automotive, and energy. The company was formerly known as NIIT Technologies Limited and changed its name to Coforge Limited in August 2020. Coforge Limited was incorporated in 1992 and is based in Gautam Buddha Nagar, India.