Coforge Q4 Results Review - Strong Revenue Growth Amid Macro Challenges: IDBI Capital

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..IDBI Capital Report.Coforge Ltd. reported strong growth in Q4 due to healthy order book. However, challenging macro has led to slowdown in executable order book leading to 17% YoY growth in FY24 versus 20% YoY growth in last year. This we believe indicates slowdown in revenue growth. We have factored in 10% YoY growth in organic business in FY25E. This coupled with acquisition of Cignity (expected to be completed by Q2 FY25E) we have factored in US$ revenue growth of 19% YoY and 25% YoY in FY25E and FY26E respectively. Hence, we expect profit after tax and earnings per share to grow at a compound annual growth rate of 35% & 27% over FY24-FY26E. However, on like to like basis we expect EPS to grow at a CAGR of 15%. Further, considering weak revenue profile of acquired company we maintain our Hold rating on the stock with a revised target price of Rs 5495 (25 times FY26E EPS)..Click on the attachment to read the full report:.Coforge Q4 Results: Profit Up 95% To Rs 223.7 Crore .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.

Coforge Q4 Results Review - Strong Revenue Growth Amid Macro Challenges: IDBI Capital

Cigniti acquisition to drive vertical and geo expansion

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