Target: ₹2,120
CMP: ₹1,873.40
We attended Coforge Investor Day recently. Strong growth over the years could be attributed to: stable leadership for the past eight years, with hyperspecialised industry expertise in the verticals it operates, its proactive approach in providing industry-specific solutions to client’s business problems rather than waiting for Request for Proposal (RFP) floating.
The company clarified that it is not looking to invest in the data centre business. It may look at a few M&A opportunities but stated these opportunities will be considered to gain access to fortune clients rather than filing up any capability gaps. The company sees strong growth opportunities in the healthcare business in the US albeit it is small business.
Coforge is also looking to close 20 large deals in FY26 vs 14 in FY25.
Management’s proactive approach along with stable leadership yields strong revenue growth. Fresh order intake of $3.5 billion and executable order book at $1.5 billion as on FY25 along with an aspiration of closing of 20 deals likely to provide strong revenue visibility. We tweak our USD revenue estimates for FY27 to 14 per cent (from 13 per cent).
We maintain Accumulate with a higher TP of ₹2,120 from ₹2,010 based on 39x (unchanged) FY27E P/E.
Key risk is slower-than-expected growth.
Published on December 9, 2025
