Coforge share price: Following the company’s announcement of its quarterly earnings for the March 2024 quarter, dividend, and acquisition plans of Cigniti Technologies, shares of Coforge Ltd. saw a 10% decline to ₹4505.25 today, May 3.
Coforge share price: For the quarter that concluded on March 31, 2024, Coforge recorded a consolidated net profit of ₹223.7 crore, up 94.86 percent year over year (YoY) from a profit of ₹114.8 crore during the same period the previous year. Additionally, compared to ₹2,170 crore, the consolidated revenue from operations has increased by 8.7% year over year to ₹2,358.5 crore. An interim dividend of ₹19 per share was suggested by the company’s board.
The Nirmal Bang on Coforge
According to Nirmal Bang, Coforge can replicate its organic growth from FY24, placing it in the top quartile of the industry. As such, we think its valuation should be 26.1 times March 2026 EPS. Our objective price of ₹5,602 is what we reaffirm as “Accumulate.” We anticipate faster-than-peer growth and ROICs, making this one of the highest target PE multiples for Tier-2 companies.
Nuvama Institutional Equities on Coforge
According to Nuvama Institutional Equities, the management declined to provide any quantitative guidance, which we interpret as a result of execution uncertainty. The brokerage stated, “We reduced target multiple to 27 times from 30 times on acquisition induced derating and cut FY25E and 26E EPS by on lower growth, generating target price of ₹5,850 from ₹7,000 earlie.”
