Coforge Shares Surge 6% After Q2 Net Profit Soars 86% YoY: Should You Buy, Sell, or Hold?
Coforge has made headlines with its exceptional Q2 performance, where net profit skyrocketed by 86% year-on-year to ₹376 crore. Following this news, shares of the mid-tier IT services company surged 6% to reach a high of ₹1,867 on Monday, October 27.
Impressive Financial Results
– Net Profit: Reached ₹376 crore, up from ₹202 crore in Q2 of FY25.
– Revenue: Operational revenue stood at ₹3,986 crore, marking a 32% YoY increase from ₹3,026 crore.
– Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA): Recorded at ₹728 crore, reflecting a 15.3% growth QoQ and an impressive 48% YoY.
– EBITDA Margin: Improved to 18.3%, up by 115 bps QoQ and 199 bps YoY.
– Dollar Revenue: $462 million, noting a 4.5% QoQ and 6% YoY increase in constant currency terms.
Expert Opinions on Coforge Shares
Reputable financial institutions have weighed in on whether to buy, sell, or hold Coforge shares:
– Nuvama:
– Rating: Buy
– Target Price: Increased to ₹2,250 from ₹2,000.
– Insights: Revenue grew 5.9% QoQ, and the robust order book stands at $1.6 billion, up 25% YoY.
– Elara:
– Rating: Accumulate
– Target Price: Set at ₹2,010.
– Focus Areas: Key verticals, like Banking and Insurance, show strong growth driven by digital investments.
– Nomura:
– Rating: Buy
– Target Price: Maintained at ₹1,900.
– Comments: Projected 29% revenue growth (in dollars) for FY26, maximized by an executable order book of $1.64 billion.
Conclusion: Investment Insights
Coforge’s impressive Q2 earnings showcase robust growth and profitability. With expert recommendations ranging from buy to accumulate, it’s essential for investors to consider their financial strategies. As the market adjusts, the key question remains: Should you buy, sell, or hold? With nearly a 20% increase in shares over the last six months, maintaining a keen watch on market trends and company performance will be crucial as investors navigate their options.