JM Financial has reiterated its ‘Buy’ rating on Coforge Ltd, raising its target price to ₹10,000, citing strong order book growth and robust revenue projections for FY26.
Investment Rationale
The brokerage firm highlighted Coforge’s record signed order book, which has increased 47.7% year-on-year (YoY). Management expects organic growth in FY26 to surpass FY25, driven by large deal momentum and wallet share expansion strategies.
Financial Performance and Growth Outlook
- Revenue Projection: Coforge anticipates reaching $2 billion in revenue ahead of FY27, with no perceived risk to this milestone.
- EBIT Margins: Expected to expand to 14% by FY26, supported by ESOP cost tailwinds and operating leverage.
- Market Valuation: JM Financial values Coforge at 38x earnings, reinforcing its positive outlook on the stock.
Current Market Position
Coforge’s current market price stands at ₹7,420.1, with a market capitalization of ₹49,664.24 crore. The company operates in the IT software sector, focusing on managed services and industry-specific solutions.
With strong deal closures and proactive engagement strategies, Coforge remains a top mid-cap IT pick, according to JM Financial.
