Coforge Ltd.
IT · NSE
52-week range
₹1,008 – ₹1,985
From 52w high
-31.1%
RSI (14)
66.0
vs SMA 50 / 200
↑ 50 · ↓ 200
Coforge is a mid-cap IT services company trading at ₹1,368, down 31.1% from its 52-week high and 7.0% over the past year, while sitting 14.7% above its 50-DMA. The company posted 5-year revenue and earnings CAGRs of 30.5% and 134% respectively, but carries a debt-to-equity ratio of 7.52, elevated primarily by a $550M loan to fund the $2.5B Encora acquisition. Trailing PE of 31.2x is the highest among its tracked IT peers, while forward PE compresses to 20.1x on consensus estimates.
- ✓5-year revenue CAGR of 30.5% and earnings CAGR of 134% place Coforge among the faster-growing mid-cap IT names in the peer set; Q4 net profit more than doubled YoY.
- ✓Quality score of 60 ranks 1st of 6 tracked IT sector peers, ahead of TCS (59), Infosys (60 tied), HCLTech (40), Tech Mahindra (46), and Wipro (46).
- ✓FCF was positive in 4 of the available measurement years, and consistency score stands at 76, indicating reasonably stable financial outputs relative to the measurement history.
- ✓Forward PE of 20.1x represents a 35.5% compression from the trailing PE of 31.2x, reflecting market expectations of meaningful earnings expansion over the next 12 months.
- ✗Debt-to-equity of 7.52 is materially above what is typical for an asset-light IT services business; the $550M acquisition loan for Encora has accelerated a rising debt trend, with integration execution now a key variable for balance sheet trajectory.
- ✗Price is 13.5% below the 200-DMA at ₹1,368 vs ₹1,584 and has been in a 31.1% drawdown from the 52-week high, reflecting sustained selling pressure over the medium term.
- ✗ROE of 18.6% ranks 4th of 6 IT peers and has exceeded 15% in only 3 of the tracked historical years, with TCS (48.4%) and Infosys (31.4%) significantly ahead on this capital-efficiency metric.
- ✗Profit margin of 9.48% and trailing PE of 31.2x — the highest in the peer group — create a narrow margin of safety; any slowdown in earnings growth could accelerate valuation de-rating given the premium multiple.
- ·Coforge reported Q4 results with net profit more than doubling, while simultaneously announcing that the dividend was deferred and shares-swap terms for the Cigniti deal were declared, per NDTV Profit (May 5, 2026).
- ·All regulatory approvals for the $2.5B Encora acquisition were secured (April 13, 2026), and separately, a $550M syndicated loan was arranged to fund the transaction — materially increasing the company's gross debt position.
- ·Coforge shares declined alongside the broader Nifty IT index on April 22, 2026, falling up to 11% on a day when HCLTech and Persistent Systems also saw significant sector-wide selling.
- ?Does the $550M acquisition debt for Encora carry fixed or floating rate terms, and what is the projected timeline for leverage to normalise toward levels typical of IT peers?
- ?The 5-year earnings CAGR of 134% appears high relative to peers — to what extent does this reflect a low base, inorganic acquisitions (including Cigniti), or organic margin improvement in the core business?
- ?With the stock 31% below its 52-week high but forward PE still at 20.1x, how sensitive is the current valuation to a 10-15% miss in consensus earnings estimates for FY27?
- ?How does Coforge's geographic and vertical revenue mix compare to peers such as INFY and HCLTECH, and does the Encora deal materially shift concentration risk in any particular segment?
PE
31.2
Forward PE
20.1
ROE
+18.6%
Profit margin
+9.5%
D/E
7.52
Dividend yield
+1.2%
Quality score
60/100
ROE 5y above 15%
3/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.