Prabhudas Lilladher's research report on Coforge
Coforge provided strong revenue growth guidance of 20% YoY CC for FY23 factoring -1) strong order book executable over next twelve months (USD720 mn, 38.5% YoY), 2) strong deal win momentum (22% QoQ, 50% YoY in Q4), 3) tailwinds from travel bouncing back, 4) growth in repeat business (93% revenue share in FY22, 400bps YoY) and 5) strong sales team expansion (100 people added in FY22). We believe guidance is conservative and is expected to increase slightly as the year progresses.
At CMP, stock trades at 25x/21x on FY23/24E EPS of INR 144/176 with Revenue and EPS CAGR of 17%/27% respectively over FY22-24. Coforge remains our top pick among Tier-2 IT. Maintain ‘BUY’.
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