A jack of all trades poised to shine in a low-growth industry phase

研报英文原文证据摘录

A jack of all trades poised to shine in a low-growth industry phase

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Coforge

A jack of all trades poised to shine in a

low-growth industry phase

Initiating Coverage: BUY | PO: 1,725 INR | Price: 1,499 INR

25 June 2026

Sales aggression and robust execution is a good blend Equity

We initiate coverage of Coforge with a Buy rating and a PO of INR1,725 (26x FY28E P/E)

implying 16% potential upside. We see Coforge as a mid-sized IT services firm with an Kunal Tayal >>

established presence in large industry segments such as banking and travel, with Research Analyst BofAS India

expansion into other verticals. This is supported by an effective blend of strong sales +91 22 6632 8663

capabilities alongside solid execution and industry specialization. Together, we believe kunal.tayal@bofa.com

Coforge can deliver an organic revenue CAGR of 12% over FY26–FY29E. Additionally, we Jatin Kalra, CFA >> Research Analyst

view its approach to cash flow as measured (and without excessive dilution), alongside BofAS India

an ability to assimilate acquisitions in an accretive manner. We see the latter as a +91jatin.kalra3@bofa.com22 6632 8390

valuable capability, particularly in a low-growth industry environment.

We assess approach to cash flow as measured

We believe a key debate around the stock has been whether its growth plans come at Stock Data

the expense of CF dilution. Our assessment is that (1) limits defined around receivables

metrics are acceptable relative to peers, and (2) the cost of contract acquisition is Price 1,499 INR

unlikely to materially impact profitability from current levels. Incremental focus on Price Objective 1,725 INR

improving the FCF/profit ratio from 70–80% to c.100% through better collections Date Established 25-Jun-2026