Shares of Coforge Ltd surged over 4% to Rs 7,910.50 in morning trade on May 8, following strong brokerage sentiment and solid Q4 performance. JM Financial reiterated its ‘Buy’ call on the stock and raised its target price to Rs 10,000 from Rs 9,610, implying a potential upside of over 26% from current levels.
The positive outlook comes after Coforge posted robust quarterly earnings and a record total contract value (TCV) of $2.1 billion. Excluding the mega $1.56 billion Sabre deal, the TCV still stood strong at $566 million with a book-to-bill ratio of 1.4x.
JM Financial cited that Coforge’s growth trajectory remains healthy, supported by accelerating deal momentum and improved profitability. The brokerage expects FY26 exit EBIT margins to expand to 14% from the current 13.2%. Importantly, the firm highlighted that growth isn’t coming at the expense of margins, especially with the Sabre integration progressing efficiently.
Coforge, a midcap IT services firm with a market cap of over Rs 52,900 crore, operates primarily in the software services segment. The stock has been in focus amid strong volume activity and renewed investor interest in midcap IT.
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