Valuation of Coforge offers upside as earnings growth likely to remain strong
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
This week’s tactical pick is Coforge (CMP: Rs 4,389, Nifty level: 17,639). This mid-tier IT service player, after a strong run on bourses, riding on an equally healthy financial performance, has underperformed in the past seven months – down 17 percent as against a 2 percent rally in the Nifty and the IT index. However, the financial performance continues to remain resilient and reassuring. The company had a dramatic turnaround in FY21, despite a substantial presence in the troubled travel…
