Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by AI-driven initiatives and a robust order book.
Basis of our Recommendation
Coforge is positioned for robust growth, targeting $5 billion in revenue by FY30, driven by a strong order book, AI-led initiatives, and strategic acquisitions. The company anticipates significant margin improvements, with EBITDA margins projected at 20.5-21% for FY27. While there are execution risks related to integration and market conditions, the overall outlook remains positive, supported by a solid growth strategy and operational efficiencies.
Why We Like This Stock
- Ambitious revenue target of $5 billion by FY30, implying a 19% CAGR
- Strong order book of $1.75 billion providing revenue visibility
- Improved margins driven by AI adoption and strategic business exits
Things To Watch Out For
- Execution risks related to the integration of acquisitions and large-deal conversions
- Potential impact of global macroeconomic conditions on growth
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,009 | 12,051 | 16,403 | 22,174 | 26,770 |
| Profit Before Tax (Cr.) | 1,069 | 1,275 | 2,229 | 3,069 | 3,797 |
| PBT Margin | 11.9% | 10.6% | 13.6% | 13.8% | 14.2% |
| Net Profit (Cr.) | 809 | 850 | 1,698 | 2,022 | 2,501 |
| EPS | 23.2 | 21.6 | 44.5 | 60.2 | 74.4 |
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, energy, and utilities industries. The company has a strategic partnership with Solstice Innovations, Inc. to develop agentic AI-led adoption of modern core insurancemtechnology for P&C insurers. 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.