Buy Coforge; target of Rs 5480: YES Securities

YES Securities is bullish on Coforge has recommended buy rating on the stock with a target price of Rs 5480 in its research report dated June 20, 2023.

Broker Research

June 27, 2023 / 12:07 IST

Buy

26 Aug, 2025 12:21

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YES Securities' research report on Coforge

We attended COFORGE’s Investor Day where in the management highlighted the current business environment and FY24 outlook for Coforge. The focus remains on maintaining robust execution for driving consistent performance even as the nearterm demand environment remains challenging. The 12 month executable order book offers visibility about revenue growth for FY24. Clients remain cautious and are taking more time especially with regard to signing of new deals. However, there has been no deal cancellation for Coforge so far and its deal pipeline remains steady. The company aims to drive around 50bps improvement in gross margin for FY24 through optimisation of employee cost.

Outlook

We estimate revenue CAGR of 18.4% over FY23-25E with average EBIT margin of 14.9%. We maintain our BUY rating on the stock with revised target price of Rs 5,480/share at PER of 25x on FY25E EPS. The stock trades at PER of 26.6x/20.8x on FY24E/FY25E EPS.

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