Axis Securities has buy call on Coforge with a target price of Rs 4275. The current market price of Ltd. is Rs 3877.25. Coforge Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 23901.28 Crore) operating in IT Software sector.
Coforge Ltd. key Products/Revenue Segments include Sale of services and Software Products for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 1972.90 Crore, up 7.03 % from last quarter Total Income of Rs 1843.40 Crore and up 25.10 % from last year same quarter Total Income of Rs 1577.10 Crore. Company reported net profit after tax of Rs 220.60 Crore in latest quarter.
Investment Rationale
Coforge Ltd (Coforge) Q2FY23 results stood above our expectations as its revenue grew by 6.2% QoQ in CC terms to Rs 1,959 Cr. The company reported operating profits of Rs 359.6 Cr, exhibiting a growth of 15% QoQ. In line with the operating profits growth, its operating margins also witnessed a growth of 163bps QoQ to 17.6%. This was largely on account of lower employee costs, wage hikes and higher onsite expenses. The management is confident of achieving sustainable operating margins of 19% moving forward which emanates from the company’s focus on cost optimization along with its execution efforts. Net income for Q2FY23 stood at Rs 201 Cr, up 8.2% QoQ. Deal pipeline remained strong in the quarter with Coforge signing an order intake of $315 Mn. The order book executable over the next 12 months now stands at $1,151 Mn. The management has guided for at least 35% YoY growth in FY23 on a consolidated basis.
Promoter/FII Holdings
Promoters held 40.09 per cent stake in the company as of 30-Jun-2022, while FIIs owned 21.87 per cent, DIIs 25.89 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
