Shares of IT firm Coforge rose 2.5% on September 30 after brokerage firm CLSA initiated coverage on the company with an 'outperform' rating. CLSA was bullish on the stock, citing strong execution, domain expertise, and said consulting mindset may drive robust order book, revenue, and earnings growth.
The brokerage firm said that the company was among the top 10 information technology firms in the country by revenue and projected growth in Coforge's revenue at 15%, earnings before interest, taxes, depreciation, and amortisation at 16% and compound annual growth rate at 22%, for 2025-26 (Apr-Mar) to FY28.
"Coforge is among the top 10 IT service cos in India by revenue & derives two-thirds of its revenue from financial services and travel verticals. Management’s strong execution by building strong domain expertise in these verticals and having a consulting mindset is visible in its strong order book, revenue and earnings growth," said CLSA.
CLSA has fixed price target at Rs 2,346 for Coforge, implying 51.1% upside from previous day's close.
At 2:50 pm on September 30, Coforge shares on NSE were trading 2.7% higher at Rs 1,593.7 apiece.
The brokerage cited stellar execution and a solutioning-led sales approach under CEO Sudhir Singh.
CLSA highlighted company's focus on large clients, verticals, tech partners, and acquisitions as key growth drivers.
Coforge has been rated 'buy' by 32 analysts on average; median target price is Rs 1,960, shows data compiled by LSEG.
With inputs from Reuters
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