Up to 57% more upside in Coforge shares post Q4 earnings? Check target prices

Coforge Ltd shares climbed for the second straight session on Thursday, May 7, edging up 0.24% to Rs 1283.80 in early trade on BSE. However, the counter reacted positively on Wednesday, where it closed 9.62% higher at Rs 1,280.70 in the previous session on the BSE, following the Q4 earnings announcement. 

Coforge share price targets post Q4 numbers

Hinting at 57% upside from current levels, PL Capital has upgraded 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 kept a 'Buy' tag with a target price of Rs 1,690. The brokerage believes that growth momentum to continue in FY27, backed by domain expertise and a reinvented delivery model via hybrid ModSquads. 

Axis Direct highlighted the integration of the Encora acquisition and the Cigniti Technologies merger, noting that Encora's high-tech business, under a new leadership team, is expected to deliver growth from Q1FY27

“The company’s strong executable order book and sustained client spending across verticals augur well for its business,” Axis Direct said.

Meanwhile, Nirmal Bang trimmed its target multiple to peg the target price at Rs 1,543 from Rs 1,667 per share. However, they retained their 'Buy' rating. “This is the sixth consecutive quarter of the order book being over US$500mn. The next 12 months’ executable order book is at US$1.75bn and up 2% and 16.4% on QoQ and YoY basis, respectively,” it said.

Q4 performance 

The company reported a consolidated net profit of Rs 612.3 crore, against Rs 250.2 crore in the same quarter last year. Revenue from operations climbed to Rs 4,450.4 crore from Rs 4231.5 crore in Q4FY25.