Buy Coforge; target of Rs 4680: Sharekhan

Sharekhan's research report on Coforge

Q2FY23 was in line with estimates on all fronts for Coforge. Q2 saw large deal wins, robust order pipeline, new logo additions, improvement in offshoring mix and utilization rates and drop-in attrition levels. Management reiterated revenue growth outlook of at-least 20% on CC terms and adjusted EBITDA margin band of 18.5-19% for FY2023. Company gave a positive outlook on all the key verticals - BFS, Insurance and Travel with continuous growth in automation and digital transformation activities of clients. The company is cautious given the current weak macros but is strongly optimistic on its highest ever locked in order book of $802 million for the next 12 months.

Outlook

We maintain a Buy on Coforge with an unchanged PT of Rs. 4,680, given strong earnings visibility, robust order bookings, stable margin outlook and improving operating metrics.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Coforge - 211022 - khan