ScoreWhy is Coforge Ltd ?
1
Strong Long Term Fundamental Strength with a 30.18% CAGR growth in Operating Profits
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.07 times
- The company has been able to generate a Return on Capital Employed (avg) of 27.36% signifying high profitability per unit of total capital (equity and debt)
2
With a growth in Net Profit of 124.54%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 7 consecutive quarters
- DEBT-EQUITY RATIO(HY) Lowest at 0.08 times
- NET SALES(Q) Highest at Rs 4,450.50 cr
- OPERATING PROFIT TO INTEREST(Q) Highest at 21.91 times
3
Technical trend is Sideways signifying no clear price momentum
- The technical trend has improved from Mildly Bearish on 20-May-26 and has generated -0.17% returns since then
4
With ROE of 17.7, it has a Very Expensive valuation with a 6.2 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -15.94%, its profits have risen by 103% ; the PEG ratio of the company is 0.6
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Coforge should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Coforge for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Coforge
12.06%
-0.43
37.22%
Sensex
-1.65%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
29.13%
EBIT Growth (5y)
32.97%
EBIT to Interest (avg)
11.19
Debt to EBITDA (avg)
0.55
Net Debt to Equity (avg)
-0.04
Sales to Capital Employed (avg)
1.85
Tax Ratio
15.40%
Dividend Payout Ratio
62.61%
Pledged Shares
0
Institutional Holding
66.93%
ROCE (avg)
26.33%
ROE (avg)
20.16%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
41
Industry P/E
22
Price to Book Value
8.36
EV to EBIT
30.21
EV to EBITDA
23.41
EV to Capital Employed
8.66
EV to Sales
4.36
PEG Ratio
0.76
Dividend Yield
0.56%
ROCE (Latest)
24.30%
ROE (Latest)
17.70%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend24What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.08 times
NET SALES(Q)
Highest at Rs 5,527.70 cr
PBDIT(Q)
Highest at Rs 1,058.00 cr.
PBT LESS OI(Q)
Highest at Rs 730.30 cr.
PAT(Q)
At Rs 560.25 cr has Grown at 32.8% (vs previous 4Q average
-12What is not working for the Company
OPERATING PROFIT TO INTEREST (Q)
Lowest at 12.22 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.12 times
INTEREST(Q)
Highest at Rs 86.60 cr
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Here's what is working for Coforge
Net Sales - Quarterly
Highest at Rs 5,527.70 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 730.30 cr has Grown at 46.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 497.18 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.08 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales - Quarterly
At Rs 5,527.70 cr has Grown at 35.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 4,093.03 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 1,058.00 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 730.30 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 560.25 cr has Grown at 32.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 421.93 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Coforge
Interest - Quarterly
At Rs 86.60 cr has Grown at 116.50%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 12.22 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 86.60 cr
in the last five quarters and Increased by 116.50 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 4.12 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
