'Buy' Coforge Maintains Motilal Oswal On Sustained Growth Trajectory, Deal Pipeline; Stock Remains Top Pick

Coforge continues to scale up large deals as a core growth lever. Management has set a target of signing at least 20 deals above $20 million in FY26 (five closed so far), with proactive proposals enjoying a ~40-45% win rate. Further, the Sabre deal was a milestone not just by itself, but in the number of avenues it has opened up for Coforge in travel..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.We believe Coforge Ltd.’s strong executable order book and resilient client spending across verticals bode well for its organic business. Cross-selling opportunities in Cigniti remain highly synergistic for the company. We value Coforge at 38x FY27E EPS with a target price of Rs 2,240, implying a 29% potential upside. We reiterate our Buy rating on the stock..Coforge remains one of the fastest-growing companies in the sector and is likely to sustain this trajectory in the medium term. That said, aggressive investments in capacity and acquisitions have meant that free cash flow growth has lagged both mid-cap and large-cap peers. We analyzed rolling three-year cash conversion metrics across peers and benchmarked them against other high-growth sectors like EMS. Our findings reaffirm that IT services remain the gold standard in cash flow conversion, with most companies consistently delivering strong FCF/PAT ratios. Coforge, admittedly, lags peers. There are reparations to be made in FCF conversion as the company absorbs past investments and optimizes working capital. However, we believe the foremost driver for re-rating remains earnings growth, and Coforge’s sustained growth trajectory and deal pipeline leave it well positioned..Click on the attachment to read the full report:.Adani Ports Can Rally 29% Says Motilal Oswal Maintaining 'Buy' — Check Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Coforge Maintains Motilal Oswal On Sustained Growth Trajectory, Deal Pipeline; Stock Remains Top Pick

Cross-selling opportunities in Cigniti remain highly synergistic for Coforge, adds Motilal Oswal.

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