Buy Coforge; target of Rs 2140: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Coforge has recommended buy rating on the stock with a target price of Rs 2140 in its research report dated January 06, 2026.

Broker Research

January 06, 2026 / 15:15 IST

Buy

Prabhudas Lilladher's research report on Coforge

COFORGE posted ~14% organic CAGR over FY20-25, driven by strong traction in BFSI, TTH (together accounted for ~50% of revenue), and Healthcare. Its executable order book of ~USD1.6bn provides revenue visibility of ~80%. The 10 large deal wins in H1FY26, vs. 14 wins in full year FY25, reinforce our confidence in sustained mid-teens organic growth. Number of clients at the mid and top end of the pyramid has grown at >20% CAGR over the last 5 years, reflecting deep client mining and scaling initiatives. Strengthening client pyramid is also an outcome of aggressive acquisition strategy (SLK & Cigniti), and most recently Encora would help with onboarding potential and scalable accounts. Operating margin is likely to be ~14% in the medium term due to higher amortization and limited growth within Encora before it achieves full synergy benefits.

Outlook

We initiate coverage on COFORGE with ‘BUY’ rating and TP of Rs 2,140 valuing at 32x FY28E earnings, with potential upside of ~32%. COFORGE has positioned itself in the leader’s quadrant, backed by a strategic moat built on deep domain expertise across verticals.

For all recommendations report, click here