Motilal Oswal's research report on Coforge
Coforge (COFORGE) reported 3QFY24 revenue growth of 1.8% QoQ in CC terms, above our estimates. Reported revenue stood at USD282.0m (up 1.4% QoQ/12.0% YoY). The growth was driven by BFS with 3.3% QoQ growth, while the other two verticals – TTH and Insurance – were weak, declining 2.4% and 1.3% QoQ, respectively. The company reported a robust order intake of USD354m in 3QFY24 with three large deals (1 NN+ 2 Renewals). These took the overall deals signed in 9MFY24 to USD1.2b (BTB of 1.4x), and resulted in a robust 12-month executable order book of USD974m (+16.8% YoY). However, given the extreme furlough impact in 3QFY24, management now expects FY24 USD CC revenue growth to be at the lower range of the guidance range (13-16% YoY).
Outlook
We, however, believe that the robust outlook is already factored into the price, and we do not see any potential upside from here. Our TP of INR6,600 implies 30x FY26E EPS. We reiterate our NEUTRAL rating on fair valuations.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
