Coforge shares saw a stellar rally in six months, can they breach Rs 10K mark? 

Shares of IT sector firm Coforge Ltd had a stellar run in the last six months. Coforge stock rose 78% even as the benchmark BSE 200 index lost 0.57% during the period. BSE IT index could clock gains of 21.45% in six months. The stock's six month gains exceeded its year-to-date and yearly returns of 51.37% and  55.21%, respectively. 

In the current session, IT stock hit its record high of Rs 9798.60. Later the stock saw profit-booking and closed 2.99% lower at Rs 9369.55 on BSE. Market cap of the firm fell to Rs 62,644 crore.

Riyank Arora, Technical Analyst at Mehta Equities said, "Coforge stock demonstrates a positive overall trend, supported by its current uptrend momentum. Given its strong trajectory, a potential move towards Rs 10,000 appears likely. With sustained positive sentiment, Coforge is well-positioned for further upside in the near term."

Kushal Gandhi, Technical Analyst, StoxBox advises against any fresh purchase on the counter. 

"The share price of Coforge has experienced a remarkable increase of over 120% in the past 33 weeks, demonstrating strong market leadership and significant outperformance relative to both the Nifty50 benchmark index and the IT index. However, the current price action appears to be extended on the weekly timeframe, sitting 29% above the mean. Additionally, the Relative Strength Index (RSI) across both daily and higher timeframes is currently in an extremely overbought zone, raising the likelihood of profit-taking at these record highs. Given that the upper Bollinger Band on the weekly timeframe is acting as an immediate overhead resistance, we recommend refraining from further purchases of Coforge, " said Gandhi. 

In case of Coforge, Motilal Oswal valued the IT firm 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.

A total of 0.13 lakh shares of the firm changed hands amounting to a turnover of Rs 12.44 crore. Shares of Coforge fell to a 52 week low of Rs 4291.05 on May 9, 2024.

With the current leg of rally, the IT stock has turned overbought on charts with a RSI of 90.8. This signals there were more buyers than sellers for the stock in the current session. 

Coforge shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages, which indicates the momentum is bullish both in long and short term.  

Coforge 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 slipped 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.