Coforge: IT stock sees shoots of recovery, long-term investors to gain?
The IT stock with market cap of over Rs 45,227 crore has gained 15% since May 5 when it declared earnings that beat street estimates.
- May 8, 2026,
- Updated May 8, 2026 11:06 AM IST
Shares of Coforge, which were trading in the red for long in the medium term are back in action post Q4 earnings. The IT stock with market cap of over Rs 45,227 crore has gained 15% since May 5 when it declared earnings that beat street estimates. The short term earnings-aided relief by the IT major has turned it green in terms simple moving averages (SMAs) in the short term.
The stock trades higehr in terms of 5 day, 10 day, 20 day, 30 day and 50 day SMAs. On the other hand, the stock is still in the red in terms of 100 day, 150 day and 200 day SMAs.
In fact, the Coforge stock is still down 32.63% from its 52-week high. The IT stock reached its 52-week high of Rs 1994 on July 8, 2025.
The IT sector stock was trading 6% higher in the current session at Rs 1359 against the previous close of Rs 1284.95.
The IT stock has lost 13.24% in one year and fallen 22.68% in six months. Despite the current rally, the stock has lost 18.57%.
Coforge stock has a PE of 37.15 with the sectoral PE of 23.36. Coforge shares have a beta of 1.26, indicating high volatility in a year.
In terms of technicals, the relative strength index (RSI) of the stock stands at 57.9, signaling it's trading neither in the overbought or oversold zone.
The Q4 earnings boost has prompted brokerages to reiterate their buy call on the Coforge stock.
Axis Securities has reiterated a BUY call on Coforge, setting a revised target price of Rs 1,690.
"While near-term adjustments—such as exiting low-margin business segments—may temper growth briefly, the broader trajectory remains intact. Axis Securities believes Coforge is entering a structurally stronger phase, backed by visibility, execution strength, and expanding digital capabilities," said the brokerage.
PL Capital has raised its target price on the stock to Rs 2,020 while maintaining a 'Buy' rating.
“We raise our EBIT margin estimates to 15.1%/15.3% for FY27E/FY28E, (vs 13.8%/14% earlier), post re-classification,” PL Capital said, revising the EPS estimates up 6%/7% to 7%/8% for FY27E/FY28E after factoring in interest costs on the $550 million, equity dilution from Cigniti minority issuance and Encora swap."
Axis Direct has a 'Buy' call with a target price of Rs 1,690. The brokerage says that growth momentum is likely to continue in FY27, backed by domain expertise and a reinvented delivery model via hybrid ModSquads.
MOFSL assigned a 54% upside to the Coforge stock with a price target of Rs 1,800. Q4 Revenue and EBITDA margins beat expectations.
The IT firm reported a 144.8% rise in Q4 profit. Net profit rose to Rs 612.3 crore on a quarter on quarter basis from Rs 250.2 crore in the December 2025 quarter. On a year on year basis, profit rose 134% from Rs 261.2 crore profit a year ago. Revenue rose 5.2% to Rs 4450.4 crore in Q4 against Rs 4231.5 crore in Q3 of the last fiscal. It climbed 30% on a year on year basis.
Shares of Coforge, which were trading in the red for long in the medium term are back in action post Q4 earnings. The IT stock with market cap of over Rs 45,227 crore has gained 15% since May 5 when it declared earnings that beat street estimates. The short term earnings-aided relief by the IT major has turned it green in terms simple moving averages (SMAs) in the short term.
The stock trades higehr in terms of 5 day, 10 day, 20 day, 30 day and 50 day SMAs. On the other hand, the stock is still in the red in terms of 100 day, 150 day and 200 day SMAs.
In fact, the Coforge stock is still down 32.63% from its 52-week high. The IT stock reached its 52-week high of Rs 1994 on July 8, 2025.
The IT sector stock was trading 6% higher in the current session at Rs 1359 against the previous close of Rs 1284.95.
The IT stock has lost 13.24% in one year and fallen 22.68% in six months. Despite the current rally, the stock has lost 18.57%.
Coforge stock has a PE of 37.15 with the sectoral PE of 23.36. Coforge shares have a beta of 1.26, indicating high volatility in a year.
In terms of technicals, the relative strength index (RSI) of the stock stands at 57.9, signaling it's trading neither in the overbought or oversold zone.
The Q4 earnings boost has prompted brokerages to reiterate their buy call on the Coforge stock.
Axis Securities has reiterated a BUY call on Coforge, setting a revised target price of Rs 1,690.
"While near-term adjustments—such as exiting low-margin business segments—may temper growth briefly, the broader trajectory remains intact. Axis Securities believes Coforge is entering a structurally stronger phase, backed by visibility, execution strength, and expanding digital capabilities," said the brokerage.
PL Capital has raised its target price on the stock to Rs 2,020 while maintaining a 'Buy' rating.
“We raise our EBIT margin estimates to 15.1%/15.3% for FY27E/FY28E, (vs 13.8%/14% earlier), post re-classification,” PL Capital said, revising the EPS estimates up 6%/7% to 7%/8% for FY27E/FY28E after factoring in interest costs on the $550 million, equity dilution from Cigniti minority issuance and Encora swap."
Axis Direct has a 'Buy' call with a target price of Rs 1,690. The brokerage says that growth momentum is likely to continue in FY27, backed by domain expertise and a reinvented delivery model via hybrid ModSquads.
MOFSL assigned a 54% upside to the Coforge stock with a price target of Rs 1,800. Q4 Revenue and EBITDA margins beat expectations.
The IT firm reported a 144.8% rise in Q4 profit. Net profit rose to Rs 612.3 crore on a quarter on quarter basis from Rs 250.2 crore in the December 2025 quarter. On a year on year basis, profit rose 134% from Rs 261.2 crore profit a year ago. Revenue rose 5.2% to Rs 4450.4 crore in Q4 against Rs 4231.5 crore in Q3 of the last fiscal. It climbed 30% on a year on year basis.