Coforge shares hit record high, here's what brokerages say 

Shares of Coforge Ltd hit their record high in early deals amid high volatility in the broader market today. Coforge stock gained 1.10% to a high of Rs 8,042 today against the previous close of Rs 7953.85 on BSE. The IT stock has gained 56% in one year and risen 29.48% since the beginning of this year. Coforge stock has a high PE of 52.27 with the sectoral PE of 36.95. Coforge shares have a beta of 0.8, indicating low volatility in a year.   

In terms of technicals, the relative strength index (RSI) of the stock stands at 68.3, signaling it's trading neither in the overbought or oversold zone. 

Coforge stock is trading higher than the 5-day, 10 day, 20-day, 30 day, 50-day, 100 day, 150 day and 200 day moving averages.  

Nuvama Institutional Equities said Coforge has firmly delivered on the promises it made on the Cigniti acquisition.

“We have stood our ground all along and remained positive on the stock. We are now further upgrading FY25E/26E EPS by +0.1%/+6.1% (FY25 lower due to exceptional loss). We are also upgrading target valuation to 35x Sep-26 PE (from 32x) on better growth visibility,” Nuvama Equities said.

The brokerage firm has maintained its ‘Buy’ rating. It has raised Coforge share price target to Rs 8,650 per share from Rs 7,500 earlier.

Motilal Oswal values Coforge organically at 40 times Sep’26E EPS versus 38 times earlier and values the Cigniti business at 25x Sep’26E EPS. It retained a ‘Buy’ rating on Coforge stock and raised the target price to Rs 10,000 per share.

Antique Stock Broking said Coforge reported strong organic revenue growth during the quarter with strong growth outlook commentary for coming quarters.

“We increase our EPS forecast for FY26/ 27 by 4%/ 6% post the strong outlook and performance. We expect Coforge’s growth to remain strong in the near to medium term and forecast 12%/ 15%/ 15% in organic CC terms for FY25/ 26/ 27. We continue to value the company at 33x PE on FY27 EPS; our valuation multiple is at 10% discount to Persistent,” said Antique Broking.

It maintained a ‘Buy’ call and increased Coforge share price target to Rs 8,400 from Rs 7,375 earlier. 

Sharekhan has assigned a price target of Rs 8,480. 

"Post moderation in revenue growth in FY25, the company’s organic business is expected to regain strong growth trajectory in FY26. Margin uptick to be supported by lower ESOP costs, higher offshoring and lower SG&A costs. Clarity on disruption from Gen AI on Cigniti’s testing business post transition to be vital. We upgrade Coforge to Buy with revised price target (PT) of Rs 8,480 (valued at 40x Sept26E EPS)," said Sharekhan. 

The IT firm reported a 17% rise in net profit in the second quarter of fiscal 2025. The company reported a net profit of Rs 212 crore in Q2 against Rs 181 crore a year ago. Revenue from operations rose 34% to Rs 3,062 crore from Rs 2,276 crore a year ago. 

EBIT (earnings before interest and tax) margin deteriorated marginally by 14 bps YoY to 11.4 percent.

The company's board cleared a second interim dividend of Rs 19 apiece, with October 11 as the record date.

Coforge Limited is an India-based information technology (IT) solution company. It is engaged in the in-application development and maintenance, managed services, cloud computing and business process outsourcing. The Company provides computer programming consultancy and related activities.