YES Securities' research report on Coforge
Overall, strong performance along with sequential improvement in margin in this tough supply constrained environment. While, the performance remains broadbased, the pickup in travel and transportation vertical has been supporting growth. The demand environment remains strong and the robust deal booking offers strong revenue visibility for FY23 and it would remain among the growth leaders in tier 2 IT space. The guidance of 20% revenue growth in cc terms for FY23 remains strong. The company is expected to achieve adjusted EBITDA margin of around 19% for FY23 led by higher offshoring and improving employee pyramid.
Outlook
We maintain BUY Rating on the stock with revised target price of Rs 4,654/share at 30x on FY24E EPS. The stock trades at PER of 23.3x on FY24E EPS.
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