Coforge Shares Rally 7% On Stock Split, Q4 Results, Dividend; Target Prices

Shares of Coforge climbed 7 per cent successful Tuesday's waste and acquisition aft nan IT midcap institution logged a beardown group of results for nan March quarter, driven by better-than-expected sequential gross maturation of 3.4 per cent successful CC terms, robust bid inflows totaling $2.1 billion, and an betterment successful operating margins. The IT patient besides provided a patient outlook for FY26, pinch guidance indicating beardown net visibility. This capacity led respective brokerage firms to task a 20 per cent gross maturation and separator description successful FY26, prompting them to rumor ‘Buy’ ratings connected nan stock.

Adding to nan optimism connected nan antagonistic were nan announcements connected banal divided and dividend for FY25. 

Shares of Coforge climbed 6.66 per cent to deed a precocious of Rs 7,999.00 connected BSE. 

Centrum Broking said nan 12-month executable bid book stood astatine $1.5 billion, up 47.7 per cent YoY pinch a precocious grade of repetition business. Headcount for Coforge grew by 403 labor sequentially to 33,497 and  attrition decreased 100 ground points QoQ to 10.9 per cent. Utilization was besides up 70 ground points astatine 82 per cent.

"We support BUY pinch a revised target value of Rs 9,331 (vs Rs 10,540 earlier) astatine a PE of 35x connected March 2027E EPS. We person decreased target PE aggregate from 38x to 35x to relationship for adjacent word uncertainties successful nan macro environment," Centrum broking said.

Choice Broking said while nan near-term conditions whitethorn mildly effect cardinal sectors, it has reduced its estimates only marginally -- by 1–3 per cent, and adopted a blimpish position connected separator description . 

"We support our standing to BUY pinch a downward revised target value of Rs 10,765, implying a PE aggregate of 40x (maintained) based connected FY27E EPS of 269.10," it said.

Coforge reported a quarter-on-quarter gross maturation of 3.4 per cent successful changeless rate (CC) terms, somewhat supra expectations of 3.2 per cent. This maturation was chiefly driven by beardown capacity successful nan BFSI and recreation verticals.

Despite ongoing macroeconomic uncertainties, nan institution remains assured successful its FY26 maturation trajectory, supported by a robust bid book, a patient woody pipeline, and expected synergy benefits. For nan quarter, EBIT separator improved by 123 ground points QoQ to 13.2 per cent. Management besides indicated that ESOP-related costs are expected to diminution further, targeting a simplification to 100 ground points of gross starting from nan 2nd half of FY26.

"The institution sees a clear statement of show for improving margins complete nan adjacent 2 years. Deal momentum continued to accelerate, pinch caller bid intake reaching $2.1 billion—significantly higher than $501 cardinal successful Q3 and nan eight-quarter mean of $451 million. Its pipeline of ample deals remains beardown and unaffected, pinch closures anticipated successful nan adjacent term," said Antique Stock Broking. The brokerage maintained its 'Buy' standing and kept its target value unchanged astatine Rs 9,650.

Motilal Oswal Financial Services (MOFSL) highlighted Coforge’s caller woody pinch Sabre arsenic a beardown awesome that mid-tier IT firms now person nan standard and solution maturity to unafraid cost-efficiency-driven contracts.

"Among Tier-II players, our apical prime is Coforge," MOFSL stated. "Its robust capabilities successful nan BFS vertical position it good to capitalise connected a request recovery, and its beardown full statement worth (TCV) points to a coagulated near-term maturation outlook. We judge Coforge’s integrated business fundamentals are strong, and nan acquisition of Cigniti could service arsenic a valuable semipermanent asset."

MOFSL values nan banal astatine 38 times FY27E net per stock (EPS), assigning a target value of Rs 11,000—implying a imaginable upside of 47 per cent.

Foreign brokerage Nomura besides named Coforge arsenic its apical prime among mid-cap Indian IT services companies, mounting a target value of Rs 9,730 connected nan stock.

Coforge banal divided grounds date 

Alongside its quarterly results, Coforge declared a 4th interim dividend of Rs 19 per stock for FY25. The Board has group May 12 arsenic nan grounds day to find shareholder eligibility for nan dividend. The interim dividend will beryllium paid wrong 30 days from nan day of declaration.

In addition, nan institution has announced a banal split. Coforge has fixed Wednesday, June 4, arsenic nan grounds day for determining nan entitlement of equity shareholders for nan intent of splitting its existing equity shares. Under this split, each equity stock pinch a look worth of Rs 10 will beryllium subdivided into 5 equity shares pinch a look worth of Rs 2 each, afloat paid-up and ranking pari passu successful each respects.