Brokerage firm Jefferies in its latest note has downgraded IT major Coforge after its weak Q4 results. The brokerage has downgraded the stock to Underperform and has cut the target price for the stock to Rs 4,290. This implies a 13% downside in Coforge share price from CMP of Rs 4,979.
Coforge’s net profit in the January to March quarter for 2024 came in at Rs 229.2 crore against Rs 242.8 crore during the previous quarter, a decline of 5.6%. The company’s revenue however came in higher than the previous quarter, at Rs 2,358.5 crore against Rs 2,323.3 crore in Q3FY24.
The board of Coforge has announced an interim dividend of Rs 19 per share for its shareholders along with the Q4 results. Separately, Coforge announced that it will acquire a 54% stake in Cigniti Technologies for Rs 1,415 per share.
The company’s EBIT came in at Rs 301 crore, a 4.1% drop vs Rs 314 crore posted in the previous quarter. Margins too declined sequentially to 12.8% vs 13.5% in the previous quarter.
