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News Topical, Digital Desk : Digital IT solutions and tech consulting services provider Coforge's stock saw gains in Tuesday's session, reaching above 1660 during the session. This rally in the stock comes after a recent decline. After a 15% decline in a month, the stock received an investment recommendation, which led to a buy recommendation. PL Research said it has initiated coverage on the stock and has given an investment recommendation in the stock. Another brokerage had recently given an investment recommendation on the stock.
What's the stock recommendation?
PL Research has initiated coverage on COFORGE and issued a BUY rating. The brokerage has set a target price of ₹2,140, based on a valuation of 32 times FY28E earnings. The stock closed around ₹1656 on Tuesday, and based on this, the stock has a potential upside of around 30%. According to the report, COFORGE is well positioned for its next growth phase, and the company has established a strong strategic advantage based on deep domain expertise across various verticals, positioning it among the sector leaders. PL Research says that COFORGE recorded an organic CAGR of around 14% from FY20 to FY25. This growth was driven by strong traction in the BFSI and TTH segments, which contributed approximately 50% to total revenue, while the healthcare segment also provided significant support. Stock Market: Amid sharp declines in RIL, this brokerage raises target, now projected growth. What's in store for you and the common man this Budget (Budget 2026)? The company's executable order book of approximately $1.6 billion provides strong revenue visibility for the future, covering approximately 80% of earnings. COFORGE secured 10 large deals in H1FY26, compared to 14 in the entire FY25. The brokerage believes this trend indicates a strong potential for the company to maintain mid-teens organic growth going forward. How the stock performed: The stock saw gains in Tuesday's session. However, the stock has seen a 16% decline in a month. Its full-year return has been negative 14%. Previously, Motilal Oswal had recommended investing in the stock in a report released on December 26th with a target of 2500. This means the brokerage has forecast a gain of over 50% for the stock.
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