Coforge Shares Surge 6% Following Strong Q4 Results: What Investors Should Know
Coforge shares surge 6%, rally 16% in three days post Q4 results. What's ahead for investors?
The Economic TimesImage: The Economic Times
Coforge shares rose 6% to ₹1,359.7 on the National Stock Exchange after reporting a 134% increase in net profit for Q4 FY26. The stock has gained 16% over three days, with analysts projecting continued growth driven by a robust order book and strategic acquisitions.
- 01Coforge's net profit surged 134% year-on-year to ₹612.3 crore in Q4 FY26.
- 02Revenue from operations increased by 30% year-on-year to ₹4,450 crore.
- 03Analysts expect a 23% EPS CAGR over FY27-29, with attractive valuations.
- 04Nomura raised the target price to ₹2,100, indicating a 63% upside potential.
- 05The acquisition of Encora is projected to add approximately $550 million in revenue in FY27.
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Coforge shares experienced a 6% increase on Friday, reaching an intraday high of ₹1,359.7 on the National Stock Exchange (NSE). This surge follows a strong performance in the company's Q4 results, where it reported a net profit of ₹612.3 crore, marking a 134% increase from the previous year. Revenue from operations also saw a significant rise, climbing 30% year-on-year to ₹4,450 crore. Coforge CEO Sudhir Singh expressed confidence in the company’s growth trajectory, anticipating robust revenue growth and an EBITDA of over 20.5% for FY27. Analysts are bullish on the stock, with Jefferies raising earnings estimates by 9-11% and projecting a 23% EPS CAGR over FY27-29. Following the Q4 results, Nomura set a target price of ₹2,100, suggesting a 63% upside for investors. The company has secured six large deals worth $648 million in Q4, contributing to a 16% growth in its executable order book, which now stands at $1.752 billion. Despite expected flat performance in Q1 FY27 due to the exit from low-margin operations, analysts believe Coforge will outperform industry growth rates.
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Coforge's strong performance indicates potential job stability and growth opportunities in the IT sector, benefiting employees and stakeholders.
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