Coforge stock rose 11% in one week to a 9-month high; Brokerages maintain ‘Buy’ call

The stock has gained in the last one month at its current level of 3,735 4,321, giving a return of 15.68 per cent. nifty it The index has grown by 7.37 per cent during the same period. The stock gained 11 percent in the past week alone, accounting for most of the month’s gains.

After reaching an all-time high of Rs. At 6,135 on January 04, 2022, the stock experienced selling pressure and fell 48 per cent in the next six months till June. However, it started improving in October last year and has since gained about 28.65 per cent. At current levels, the stock is trading at a nine-month high.

On January 20, Coforge reported a 24 percent increase in its consolidated net profit 228 crore for the December quarter. The company posted a net profit of 183 crore in the year-ago quarter.

The revenue of the company came in at Rs. 2,087 crore as compared to Rs 2,087 crore in Q3 FY23, a growth of 25.57 per cent. 1,662 crore during the same period last year.

company’s operating profit 380 crore, a healthy growth of 5.5 percent on a QoQ basis. Management revised its organic CC revenue growth guidance to 22 percent for FY23.

The company said trailing-twelve-month (LTM) attrition declined 60 basis points sequentially to 15.8 per cent.

Coforge has signed the highest number ever deal In Q3 FY23. The company recorded order bookings of over $345 million, up 40 percent year-on-year. The company indicated that the growth momentum is likely to be sustained in FY24 based on the execution of five large deals during the quarter.

The company said there are certain segments in the market that are being impacted by macro issues, but as of now, they are largely insulated from pain.

Following the strong results of the company, the domestic brokerage firm Axis Securities has maintained its “Buy” call on the stock with a target price of 4,715 each.

“From a longer-term perspective, we believe Coforge is well positioned to drive growth given its many long-term contracts with the world’s leading brands.” ,

However, the brokerage said rising concerns over the prospects of larger economies coupled with current supply-side constraints pose uncertainty over the company’s near-term growth trajectory.

another brokerage firm, ICICI Securities, also maintained its “buy” rating on the stock with a target price of Rs. 4,870 each.

At the bottom of the travel vertical (in the United States), preferred partnerships with Fortune 500 insurance and Tier 1 banking companies, and recent acquisitions will drive 17.6 per cent revenue CAGR in FY22-25E, ICICI Securities said.

An average of 22 analysts polled by Mintjini have a ‘buy’ call on the stock.

disclaimer, The views and recommendations expressed above are those of the individual analysts or broking companies and not those of Mintzeny.

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