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Coforge Valuation Attractive After Recent Correction, May Rally Up To 73%, Says Motilal Oswal — Details Inside

The brokerage noted that the stock currently appears to be pricing in an extreme bearcase scenario.

Coforge Valuation Attractive After Recent Correction, May Rally Up To 73%, Says Motilal Oswal — Details Inside
Motilal Oswal believes Coforge's strong, executable order book, along with resilient client spending across verticals, continues to support its organic growth outlook.
(Photo: Company website)
STOCKS IN THIS STORY
Coforge Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Motilal Oswal Financial Services believes Coforge Ltd.'s strong and executable order book, along with resilient client spending across verticals, continues to support its organic growth outlook. The brokerage also highlights meaningful cross‑sell opportunities following the integration of Cigniti, which it sees as highly synergistic and value‑accretive for the company over the medium term.

The brokerage noted that the stock currently appears to be pricing in an extreme bear‑case scenario. At current levels, Coforge is trading at attractive valuations of 19x and 15x FY27 and FY28 estimated earnings, respectively. Factoring in near‑term risks related to the travel vertical, Motilal Oswal has trimmed its earnings estimates by 4–6%.

Additionally, considering uncertainties around AI‑led disruption in the IT services sector, the brokerage has reduced its target valuation multiple to 26x from 32x earlier. Based on this revised assessment, Motilal Oswal has set a target price of Rs 1,880, implying a potential upside of 73% from current levels. 

Click on the attachment to read the full report:

Motilal Oswal Coforge .pdf
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