Coforge, a prominent player in the IT solutions sector, experienced a remarkable surge in its share price, soaring over 6% on Tuesday following the announcement of its Q4 financial results. The stock rallied as much as 6.66%, reaching ₹7,999.00 on the BSE, fueling investor enthusiasm.
Impressive Financial Performance
Coforge reported a 17% year-on-year (YoY) increase in consolidated net profit, amounting to ₹261 crore for the fourth quarter of FY25, compared to ₹223.7 crore in the same period last year. The company’s revenue from operations witnessed a staggering 47% increase, rising to ₹3,409.9 crore from ₹2,318.4 crore YoY. When adjusted for constant currency (CC), revenue growth stood at 43.8% YoY, while in USD terms, it grew 43.6%.
- The quarter also marked a significant achievement for Coforge, with five large deals closed, resulting in a total contract value (TCV) of $1.56 billion.
- The executable order book for the next twelve months is robust at $1.5 billion, reflecting a 47.7% YoY and a 10.3% QoQ increase.
Dividend and Stock Split Announcement
In addition to its impressive earnings, the board of Coforge declared a fourth interim dividend of ₹19 per equity share for FY25. The record date to determine eligible shareholders for this dividend has been set for May 12. Furthermore, the company has announced a 1:2 stock split, which means that each equity share with a face value of ₹10 will be split into two shares with a face value of ₹5 each. The record date for this stock split is June 4.
Analyst Insights on Coforge Shares
Following these strong results, analysts are optimistic about Coforge’s future. The company reported an impressive TCV growth of 174% YoY, with a 12-month executable order book up 48% YoY. Nuvama Institutional Equities highlighted that these figures lay the groundwork for a robust FY26 and reaffirm Coforge’s leadership in the sector. They have adjusted their FY26E and FY27E EPS estimates down slightly by 2.6% and 2.5%, respectively, while maintaining a valuation of 35x FY27E PE.
- Nuvama retains a ‘Buy’ rating on Coforge shares but has lowered the target price to ₹9,400 from ₹9,600.
Antique Stock Broking also praised Coforge’s strong organic revenue growth and optimistic outlook. They have increased their FY26 and FY27 EPS forecasts by 4% and 3%, respectively, while lowering their target P/E multiple to 36x due to increased industry demand risks, maintaining a ‘Buy’ rating with an unchanged target price of ₹9,650.
Coforge Stock Performance Review
In the past month, Coforge’s share price has jumped 15%. However, it remains down 20% year-to-date (YTD). Despite this, the stock has demonstrated impressive long-term growth, gaining 73% over the past year and an astonishing 95% over three years. Over a five-year span, Coforge has delivered multibagger returns of 437%.
At 10:10 AM, Coforge shares were up 1.90%, trading at ₹7,641.55 on the BSE, indicating continued investor confidence in the company’s strong performance and promising future.
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