Thanks to the significant underperformance, the stock of Coforge is now reasonably valued and offers good risk-reward
(Illustration by Suneesh K.)
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
Coforge (CMP: Rs 3376, Market Cap: Rs 20,565 crore) reported a stellar show in FY22 with strong traction in revenue, improvement in operating margin despite supply side challenges, and record order flows. However, thanks to the macro concerns and investor apprehensions about the IT sector’s growth outlook in light of the same, the stock has underperformed—down 29 percent in the past eleven months against 11 percent fall in the IT index and 3 percent in the Nifty. The outlook…
