Coforge Ltd.
NSE: COFORGECoforge Ltd.: A 30-second snapshot
Coforge is a mid-cap NSE IT services company trading at ₹1,421.8 (33.4x trailing PE, 21.3x forward PE), with 5-year revenue growth of 30.5% and earnings growth of 134%. The stock sits 8.6% below its 200-DMA and 28.4% below its 52-week high, while carrying a debt-to-equity of 7.52 — the highest in its 6-stock IT peer group — reflecting acquisition-driven financing from the Encora and Ciginiti transactions.
P/E
33.4
Forward P/E
21.3
ROE
+18.6%
Debt / Equity
7.52
Profit Margin
+9.5%
Div. Yield
+1.1%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
66/100
News
8 headlines · 3 positive · 1 negative
Coforge-Ciginiti merger: How will it impact your shareholding; what it means for investors - Business Today
Business Today
Coforge Q4 Results: Profit more than doubles to Rs 612 crore on robust deal wins - The Economic Times
The Economic Times
Coforge Q4 Results: Net Profit More Than Doubles, Dividend Deferred; Shares Swap For Cigniti Deal Declared - NDTV Profit
NDTV Profit
Coforge's (NSE:COFORGE) Promising Earnings May Rest On Soft Foundations - simplywall.st
simplywall.st
COFORGE Share Price Today - Coforge on NSE/BSE - scanx.trade
scanx.trade
Recent context
- ·Coforge reported Q4 FY26 net profit more than doubling to ₹612 crore on robust deal wins; the dividend was deferred and a shares-swap ratio for the Ciginiti merger was declared (Business Today, Economic Times, NDTV Profit — May 2026).
- ·The Coforge-Ciginiti merger is pending; the share-swap terms will affect dilution and post-merger D/E, and integration execution will be a key near-term focus for the combined entity.
- ·A simplywall.st note (May 2026) raised the concern that Coforge's reported earnings may rest on soft foundations — a minority view in the news sample but directionally aligned with the elevated D/E and acquisition complexity.
Strengths
- +5-year revenue CAGR of 30.5% and earnings CAGR of 134% substantially exceed the pace of large-cap IT peers, driven by targeted acquisitions and organic deal wins.
- +Q4 FY26 net profit more than doubled YoY on robust deal wins, compressing the forward PE to 21.3x from a trailing 33.4x and signalling near-term earnings visibility.
- +FCF was positive in 4 of the available measurement years, and the consistency score of 76 indicates a reasonably stable earnings profile beneath the acquisition activity.
- +Dividend yield of 1.13% and a quality score of 58 place Coforge 3rd of 6 in the IT peer group, ahead of HCLTech (40), TechM (46), and Wipro (46).
Weaknesses
- −Debt-to-equity of 7.52 is substantially above the IT peer group (TCS, Infosys, HCLTech, Wipro all carry negligible leverage); rising debt trend linked to acquisition financing creates meaningful interest burden risk if growth disappoints.
- −ROE of 18.6% ranks 4th of 6 IT peers; TCS (48.4%), Infosys (31.44%), and HCLTech (23.36%) all demonstrate materially higher capital efficiency on comparable or larger revenue bases.
- −Price has been below the 200-DMA for an extended period, down 15.38% over 12 months, with a 28.37% drawdown from the 52-week high — against a 3-month partial recovery of 17.22% that has not yet reclaimed long-term trend.
- −Trailing PE of 33.4x is the highest in the 6-stock IT peer set (next highest: TechM at 28.5x, TCS at 16.9x, Infosys at 15.6x), representing a significant premium that depends on sustained above-peer earnings delivery.
Open questions
- ?Does the 134% 5-year earnings CAGR reflect a structural competitive advantage in Coforge's niche verticals, or is it primarily a function of acquisition accounting and revenue consolidation from Encora and Ciginiti?
- ?At a D/E of 7.52 with a rising debt trend, what level of revenue growth or margin improvement would be required to bring leverage back to IT-sector norms, and over what timeline?
- ?The Coforge-Ciginiti merger introduces integration complexity and share dilution; how has management's track record on prior acquisitions (notably Encora) performed against stated synergy targets?
- ?With the trailing PE at 33.4x — the highest among 6 IT peers — what earnings growth rate is embedded in the current price, and how does that compare to analyst consensus projections across 34 analysts (1–5 scale, mean 1.73)?
Peer comparison: IT
Ranks 3 of 6 on qualityTechnical state
Current price
₹1,421.80
SMA 50
₹1,253.58
SMA 200
₹1,555.30
RSI (14)
62.9 (neutral)
From 52w high
-28.4%
1Y return
-15.4%
3M return
+17.2%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 7.52 is substantially elevated for an IT services company; the Coforge-Ciginiti merger and prior Encora acquisition financing have driven a rising debt trend, creating leverage risk if integration underperforms or revenue growth slows.
- mediumPrice of ₹1,421.8 is 8.6% below the 200-DMA (₹1,555.3) and down 15.38% over 12 months; drawdown from 52-week high is 28.37%, indicating the stock has not reclaimed its long-term moving average despite a 17.22% 3-month recovery.
- mediumROE of 18.6% ranks 4th of 6 IT peers (vs TCS 48.4%, Infosys 31.44%, HCLTech 23.36%); ROE exceeded 15% in only 3 of the available measurement years, suggesting limited depth to current profitability levels.
- lowNews sample of 8 total articles is sparse; a simplywall.st note (May 2026) flagged that recent earnings may rest on soft foundations, and sentiment conclusions carry limited statistical weight at this sample size.
Cross-section contradictions
- 5-year earnings CAGR of 134% and Q4 net profit more than doubling YoY coexist with a 15.38% price decline over 12 months and a 28.37% drawdown from the 52-week high.
- Forward PE of 21.3x implies substantial near-term earnings growth, yet the stock carries the highest trailing PE (33.4x) among 6 IT peers while trading below its 200-DMA.
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Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days