Coforge shares saw a sharp cut and hit a lower circuit of 10% in the morning trade today after the company posted a weak set of Q4 earnings. Coforge share price hit a day’s low of Rs 4,487.15 in the opening trade. The company’s margin came in lower than estimates and the company didn’t give any further guidance either.
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 the previous close of Rs 4,979. (May 02)
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.
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.