Buy Coforge; target of Rs 2100: Sharekhan

Sharekhan's research report on Coforge

Reported revenue stood at $442.4 million, up 8% q-o-q in CC terms, beating our estimate of 6.3%. EBITDA margins expanded ~60 bps q-o-q to 17.5%, beating our estimate of 17.3%. Twelve-month executable order book stood at $1,545 million, up 2.7% q-o-q/47% y-o-y. Management expects H2FY26 to be stronger than H1FY26 and eyes a 14% EBIT margin in FY26.

Outlook

We maintain Buy rating with an unchanged PT of Rs. 2,100 (valued at 36x FY27E EPS). At CMP, the stock trades at 35.7/29.1x FY26/27E EPS.

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