Key Metrics
| Metric | Value |
|---|---|
| Current Price | ~₹1,400 |
| Market Cap | ~₹60,000 Cr |
| P/E Ratio | ~32x |
| Dividend Yield | ~1.1% |
| Revenue Growth (FY26) | 36% |
| Net Profit Growth (FY26) | 92% |
| Analyst View | Buy |
Coforge delivered strong FY26 performance with revenue reaching ₹16,403 Cr (+36%) and net profit growing over 90% year-on-year.
Business Overview
Coforge Limited is a mid-tier IT services company focused on:
- Banking & Financial Services
- Insurance
- Travel & Transportation
- Digital Engineering
- Cloud & AI Solutions
Unlike many large IT firms, Coforge has consistently outperformed the industry through domain-focused execution and large deal wins.
Strengths ✅
- Revenue growth of 36% in FY26, significantly ahead of most Indian IT peers.
- Q4 FY26 revenue grew about 30% YoY.
- Net profit nearly doubled during FY26.
- EBITDA margins expanded materially during FY26.
- Strong order book and large deal wins continue to support growth visibility.
- Beneficiary of AI, cloud migration, and digital transformation spending.
Risks ⚠️
- IT spending slowdown in the US and Europe can affect growth.
- Travel and transportation segment remains cyclical.
- Valuation is no longer cheap after strong earnings growth.
- Currency fluctuations can impact margins.
- Mid-cap IT stocks tend to be more volatile than large-cap peers.
Recent Financial Performance
FY26 Highlights:
- Revenue: ₹16,403 Cr (+36%)
- Q4 Revenue: ₹4,450 Cr (+30% YoY)
- EBITDA Margin: 20.6%
- Net Profit: Strong triple-digit growth in the latest quarter.
Technical View
- 52-week Range: ₹1,008 – ₹1,994
- Current price is well below previous highs.
- Major Support Zone: ₹1,250–₹1,350
- Resistance Zone: ₹1,600–₹1,750
- Long-term trend remains positive if earnings momentum continues.
Investment Verdict
| Horizon | View |
|---|---|
| Short Term (1-3 Months) | Neutral to Bullish |
| Medium Term (6-12 Months) | Bullish |
| Long Term (3-5 Years) | Strong Bullish |
Scorecard
- Business Quality: ⭐⭐⭐⭐☆
- Financial Strength: ⭐⭐⭐⭐☆
- Growth Visibility: ⭐⭐⭐⭐⭐
- Valuation: ⭐⭐⭐☆☆
- Long-Term Investment: ⭐⭐⭐⭐⭐
Overall Rating: 8.5/10
Coforge is one of the fastest-growing Indian IT companies currently. While the stock is not a deep-value opportunity, its strong deal pipeline, earnings growth, and leadership in digital transformation make it an attractive long-term compounder. Investors may consider accumulating on corrections rather than chasing sharp rallies.
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