Coforge shares get outperform call from CLSA, stock rises 4% 

Shares of IT sector firm Coforge Ltd rose nearly 4% in early deals on Tuesday after global brokerage CLSA initiated coverage on the stock with an ‘outperform’ rating. CLSA assigned a price target of Rs 2,346 on Coforge stock,a potential upside of 52% from Monday’s close of Rs 1548.90.

Coforge shares rose 3.84% to Rs 1608.50 in the current session. Market cap of the IT firm rose to Rs 53,451 crore. 

A total of 1.01 lakh shares of the firm changed hands amounting to a turnover of Rs 15.98 crore. Shares of Coforge fell to a 52 week low of Rs 1190.84 on April 7, 2025 and rose to a 52 week high of Rs 2003.59 on December 30, 2024. 

The IT stock is down 17% in 2025 but gained 14% in a year. 

The IT stock is neither overbought nor oversold on charts with a RSI of 32.1. Coforge shares are trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages, which indicates the momentum is bearish both in the long and short term.  

CLSA noted that Coforge is among the top 10 Indian IT services companies by revenue and earns two-thirds of its overall topline from financial services and travel verticals.

The company’s strong order book, revenue and earnings growth reflects the strong execution capabilities that the management has built in financial services and travel verticals, CLSA said.

The brokerage expects Coforge’s revenue grow to at a Compounded Annual Growth Rate (CAGR) of 15% over financial year 2026-2028, while its Earnings Before Interest and Tax (EBIT) and Earnings Per Share (EPS) is likely to grow at a CAGR of 16% and 22% over the same timeframe respectively. 

Coforge Limited is an India-based information technology (IT) solution company. It is engaged in the in-application development and maintenance, managed services, cloud computing and business process outsourcing. The Company provides computer programming consultancy and related activities.