Coforge's management has guided for robust performance on all parameters: Record deal total contract value in Q2 FY27 of $1 billion (50.6% QoQ and 102% YoY), and hopes to extend this run-rate into Q3; the broad-based nature of deal wins and an immediate ramp-up of TCV to revenue provides visibility for strong near-term revenue growth (FY27/FY28).
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ICICI Securities Report
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Following Coforge Ltd.'s September-quarter results, ICICI Securities has maintained 'Buy' rating on the stock. The brokerage rolls forward by two quarters to Q3 FY28E-Q2 FY29E earnings per share of Rs 82 with target multiple of 28 times to arrive at a revised target price of Rs 2,290.
Coforge's management has guided for robust performance on all parameters:
Record deal total contract value in Q2 FY27 of $1 billion (50.6% QoQ and 102% YoY), and hopes to extend this run-rate into Q3; the broad-based nature of deal wins and an immediate ramp-up of TCV to revenue provides visibility for strong near-term revenue growth (FY27/FY28).
Ebit margin guidance upgraded by 50bps to 16%, with a 17% exit-margin expectation in Q4 FY27 and beyond, which is driven by AI-led efficiencies and disciplined execution.
Improving cash conversion with free cash flow/profit after tax guidance of 100% for FY27.
ICICI Securities has raised its FY28E earnings per share by 7%, largely led by a 100bps increase in its Ebit margin estimate.
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