'Not involved': Coforge rejects stake acquisition claims in R Systems; stock up 3%

IT firm Coforge Ltd on Friday issued a clarification regarding a news report that claimed it is "planning to acquire a stake in R Systems", calling it mere speculation. "We would like to inform that the company, on its own, considers it necessary to clarify to the Stock Exchanges that there is no such development that warrants disclosure under Regulation 30 of the Sebi Listing Regulations. The Company is not involved in any such discussions or negotiations that may have triggered such market speculation. Any material information requiring disclosure under the applicable regulatory requirements will be promptly disseminated to the Stock Exchanges," the company stated.

Stock-wise, Coforge climbed 2.56 per cent in early trade to hit a high of Rs 1,839.80. The counter, however, erased its entire gains as the session progressed and was last seen trading 0.14 per cent lower at Rs 1,791.45.

Around 6,257 shares changed hands on BSE at the time of writing this story. The figure was lower than the two-week average volume of 82,000 shares. Turnover on the counter came at Rs 1.12 crore, commanding a market capitalisation (m-cap) of Rs 59,872.29 crore.

Technically, the scrip traded lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 60.33. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-earnings (P/E) ratio of 16.86 against a price-to-book (P/B) value of 2.14. Earnings per share (EPS) stood at 106.27 with a return on equity (RoE) of 12.70. According to Trendlyne data, Coforge has a one-year beta of 1.1, indicating high volatility.

Meanwhile, R Systems International Ltd, on its part, had also dismissed reports of Coforge considering a stake acquisition.