SMIFS' Sharad Avasthi Sees Coforge To Touch Five-Digit Levels Soon. Here's Why?

Sharad Avasthi of SMIFS has provided his views on the tech and IT services company Coforge, particularly after its acquisition of Cigniti. He believes the combined entity of Coforge and Cigniti is expected to perform well in the future, with the long-term strategy set by the management being highly promising. Coforge, which has already seen an impressive run since its rebranding, continues to demonstrate better growth rates compared to traditional IT companies, alongside Persistent Systems. Sharad Avasthi predicts that Coforge may outpace Persistent due to its ambitious growth targets. Additionally, the company's recent numbers have exceeded expectations, and there is potential for further re-rating of its performance for both this year and the next. He also expects the second half of the year to bring improvements on both the Indian and global fronts, offering a positive outlook for the IT sector overall. While there may be some concerns about over-discounting the 18-24 month growth cycle, Sharad Avasthi remains confident that Coforge is a strong long-term investment, suggesting that it could reach levels of ₹10,000 to ₹11,000 in the next four to five years.