Coforge Shares Hit One-Month High After Dividend, Stock Split Announcement

Coforge declared a fourth interim dividend of Rs 19 per share. (Photo source: Coforge website)

The shares of Coforge Ltd. rose nearly 7% to hit over a one-month high on Tuesday after it announced a dividend and stock split.

The board of directors approved a stock split of its existing shares into two, according to an exchange filing on Monday. The company has fixed June 4 as the record date for determining the eligibility of shareholders for the purpose of a 1:2 stock split.

The company's board has agreed to split the equity shares such that an existing equity share having a face value of Rs 10 each will be divided "into two equity shares of Rs 5 each, fully paid up," an exchange filing stated.

The stock split would not alter the company's market cap but double the number of shares. This exercise is generally aimed at improving market liquidity.

The board has also declared the fourth interim dividend of Rs 19 per equity share for the financial year 2025.

The company has posted a 4.6% uptick in its topline growth at Rs 3,409 crore. Despite this rise, the company missed the revenue estimate that was placed at Rs 3,527 crore.

While Coforge also posted a notable profit of Rs 261.2 crore. This marks a 21% uptick compared to the previous quarter but has still missed the consensus estimates by Bloomberg analysts. The EBIT was up 26% to Rs 401 crore, while the margin expanded to 11.8% in comparison to 9.8% in the previous quarter.

Coforge Share Price Today

The shares of Coforge rose as much as 6.70% to Rs 7,999 apiece, the highest level since April 1. It pared gains to trade 2.85% higher at Rs 7,710 apiece, as of 9:37 a.m. This compares to a 0.01% decline in the NSE Nifty 50 Index.

It has risen 74.30% in the last 12 months and declined 20.33% year-to-date. Total traded volume so far in the day stood at 9.1 times its 30-day average. The relative strength index was at 61.

Out of 38 analysts tracking the company, 27 maintain a 'buy' rating, four recommend a 'hold,' and seven suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 11.1%.