Buy Coforge Ltd for Target Rs. 2,015 by Choice Institutional Equities
Large Deal Momentum Continues; Focus on Scaling Up Verticals:
COFORGE continues to build on its large-deal momentum. It secured 5 large deals in Q2FY26, driving an order intake of USD 514Mn and an executable order book of USD 1.63Bn, up 26.7% YoY. Notably, it closed 10 large deals in H1FY26 as compared to 14 deals in FY25, underscoring its improving win rate. The company targets order book run-rates of USD 100Mn in Healthcare and USD 200Mn in Public Sector.
View & Valuation: We believe, COFORGE to stay ahead of the curve by embedding AI early across its offering and leveraging proprietary IP and platforms such as, Code Insight AI, BlueSwan and Forgex to infuse Gen AI and intelligent automation-led delivery. We expect Revenue/EBIT/PAT to expand at a CAGR of 21.7%/26.4%/38.6% over FY25–FY28E. Taking average of FY27E & FY28E EPS of INR 57.6 and P/E multiple of 35x, we arrive at a revised target price of INR 2,015, reaffirming our BUY rating.
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SEBI Registration no.: INZ 000160131
