Motilal Oswal's research report on Coforge
COFORGE reported a strong 4QFY25 revenue growth of 3.4% QoQ in CC terms, above our estimate of 3.0% QoQ CC. Reported revenue (adjusted for disc. operations) stood at USD404m (up 3.3% QoQ/43.6% YoY). The company reported an order intake of USD2.1b in 4Q with five large deals, resulting in a robust 12-month executable order book of USD1.5b (+47% YoY). Adj. EBITDA (pre-RSU) margin came in at 18.7% (est. 18.3%). Adj. PAT stood at INR2.9b (up 25% QoQ/23% YoY).
Outlook
The company’s revenue/EBIT/adj. PAT grew 33.8%/28.6%/17.0% in FY25. We expect revenue/EBIT/adj. PAT to grow by 55.1%/58.7%/66.6% YoY in 1QFY26. We reiterate our BUY rating on COFORGE with a TP of INR11,000, implying a 47% potential upside.
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