Moneycontrol PRO
UPCOMING EVENT:Moneycontrol Pro & Espresso (A Sharekhan Company) in association with Intrazon 2.0 bring to you India’s Largest Retail Intraday Traders Online Conference. Learn 12 Amazing Strategies from 12 Intraday Traders @ Rs. 600/-. Register Now!
you are here: HomeNewsBusiness

Buy Coforge; target of Rs 5306: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Coforge has recommended buy rating on the stock with a target price of Rs 5306 in its research report dated July 29, 2021.

July 30, 2021 / 11:46 AM IST
buy_93631531

buy_93631531

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Coforge


Coforge reported strong growth of 16% QoQ USD in 1Q22, much above our (~400bps) & cons estimates (~600bps) on top of high base in 4Q21. Beat was led by strong growth in organic business at 7.6% QoQ USD (Ple: 4%). Inorganic business contributed $14.6 mn (Ple: $12 mn). Management raised organic growth guidance to ‘atleast’ 19% YoY CC for FY22 from earlier 17%. This guidance is conservative implying 1-2% growth for next three quarters. However, we believe that organic growth will be ~24% YoY USD in FY22 given 1) record organic order intake of $318 mn, +58% QoQ and next 12-months executable order book of $645 mn 38.7% YoY 2) sustained strong large deal momentum with $105 mn milestone win this quarter, 3) Increased recognition in product engineering, 4) strengthening of sales team in other vertical (manufacturing, retail, healthcare etc.), 5) recovery of travel (especially in Europe and UK).


Outlook


We value Coforge on Sep-23 EPS (roll over) of INR 160.8 to arrive at a TP of Rs.5306 (earlier Rs 4327). At CMP, stock trades at 40x/32x FY22/23E EPS of INR 117.8/148.9. Reiterate BUY.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jul 30, 2021 11:46 am

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark