Buy Coforge; target of Rs 10,765: Choice Equity Broking

Choice Equity Broking's report on Coforge

Revenue for Q4FY25 came at INR 34.1Bn, up 47.1% YoY & 4.5% QoQ (vs consensus est. at INR 35.2Bn). EBIT for Q4FY25 came at INR 4.5Bn, up 32.0% YoY & 14.6% QoQ (vs consensus est. at INR 4.4Bn). EBIT margin was down 148bps YoY but up 113bps QoQ to 13.2% (vs consensus est. at 12.7%). PAT for Q4FY25 stood at INR 2.9Bn, up 31.9% YoY & 36.9% QoQ (vs consensus est. at INR 2.8Bn)

Outlook

We project Revenue/ EBIT/ PAT to grow at a CAGR of 22.1%/ 31.0%/ 49.0% over FY25–27E. We maintain our rating to BUY with a downward revised target price of INR 10,765, implying a PE multiple of 40x (maintained) based on FY27E EPS of 269.1.

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