Jefferies cuts target price for Coforge after Q3 results; check new target

Jefferies maintains a ‘Buy’ rating on Coforge, adjusting the target price slightly to ₹11,200 from ₹11,250. The firm highlights that Coforge’s constant currency revenue growth of 8.4% in Q3FY25 exceeded expectations, indicating a robust growth trajectory. Consequently, Jefferies has increased its FY26-27 EPS estimates by up to 2% and anticipates a 40% EPS CAGR over FY25-27, underscoring the company’s strong performance and future potential.

Coforge’s Q3FY25 Financial Highlights

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In the third quarter of FY25, Coforge reported a total income of ₹2,323.3 crore, marking a 2.07% increase from the previous quarter and a 13.01% rise year-over-year. The company’s operating profit stood at ₹314 crore, a significant 19.07% sequential growth and a 5.69% increase compared to the same period last year. Net income reached ₹238 crore, up 31.49% quarter-over-quarter and 4.29% year-over-year. The operating margin was reported at 13.52%, reflecting a sequential improvement. These results underscore Coforge’s strong financial performance and its ability to maintain growth momentum in a competitive market.