Rs 19 Dividend: IT Stock To Buy 54% Stake In Cigniti, Net Up 95%; Buy For TP Rs 6007

Mid cap IT software company Coforge Ltd shares declined nearly 14% in last 1-week as company announced plans to acquire 54% stake in Cigniti Technologies at Rs 1,415 per share. Coforge expects the acquisition will improve company's operating margins by 150-200 bps by FY27 and help grow to become a $2- billion company. Meanwhile, 4 analysts have recommended buy call for Coforge shares. Coforge on May 2, 2024 recommended an interim dividend of Rs 19/share and fixed May 15, 2024 as the record date.

Coforge Ltd announced an equity dividend amounting to Rs 76.00 per share. Life Insurance Corporation Of India (LIC) has 6.22% stake in Coforge with 3,845,945 shares. Sbi Life Insurance Co. Ltd has 1.80% stake with 1,111,620 shares and HDFC Life Insurance Company Limited has 1.72% stake in the company with 1,061,824 shares. More details below:

Coforge Q4 Results: It announced its consolidated net profit at Rs 223.7 crore for the quarter ending March 31 for Q4 FY2024, up 94.86% as against Rs 114.8 crore reported in the corresponding quarter of last year. Sequentially, profit declined by 2.8% from 238 crore announced in Q3.

The company for the entire financial year, declared the consolidated net profit at Rs 808 crore, up 16.4% as against Rs 693.8 crore announced in the corresponding quarter of last year. Consolidated revenue from operations for the March 2024 declared at Rs 9,179 crore, up 14.5% year-on-year (YoY) from Rs 8,014.6 crore. Order intake for the entire financial year surged 56% YoY at $1.9 billion, as per the company's BSE filing. Total headcount of the global firm stood at 24,726, with last-twelve-month (LTM) attrition at 11.5%, improved by 60 basis points quarter-on-quarter and 258 basis points year-on-year. EBITDA margin for the quarter was 19%, up 105 basis points sequentially.

Coforge Shares Performance & Return: The 52-week high price of Coforge stock on BSE is Rs 6840.00 per share and 52-week low price is Rs 3565.20 per share, respectively. The company has a market capitalisation of Rs 38,316.24 crore. Coforge has a PE of 41.06, ROE of 33.66, and EPS (TTM) of 152.04. Coforge shares witnessed decline of 6.85% in last 1-month, soared 6% in last 3-months, gained 44% in last 2-years, and offered return of 369% in last 5-years. In last 10-years, Coforge stock surged 1420%.

Coforge Dividend History: Coforge announced 30 dividends since July 15, 2005. In last 1-year, Coforge Ltd announced an equity dividend amounting to Rs 76.00 per share. At the current share price of Rs 4481.75, Coforge Ltd.'s dividend yield is 1.70%.

Coforge Technical: Score is 40.47, stock is technically neutral. Stocks with score above 70 are considered as technically Strong and below 35 are considered weak. FII/FPI have increased holdings from 34.04% to 35.00% in March 2024 quarter. Number of FII/FPI investors increased from 430 to 456 in March 2024 quarter. Institutional Investors have increased holdings from 89.06% to 89.29% in March 2024 quarter.

Buy Call From 4 Analysts: Axis Securities feels Coforge is well-placed for growth amid its multiple long-term contracts with the world's renowned brands from a long-term perspective. The analyst recommended buy with target price of Rs 5585 per share. Choice Broking has suggested buy rating with revised target price of Rs 6007 per share. JM Financial has assigned buy but downgraded the target price to Rs 5570 from 6940 previously. Nuvama too downgraded the target price to Rs 5,850 from Rs 7000.

Coforge About: Coforge is a global digital services and solutions provider, that leverages emerging technologies and deep domain expertise to deliver real-world business impact for its clients. A focus on very select industries, a detailed understanding of the underlying processes of those industries and partnerships with leading platforms provides us a distinct perspective. Coforge leads with its product engineering approach and leverages Cloud, Data, Integration and Automation technologies to transform client businesses into intelligent, high growth enterprises.

Disclaimer: The stock has been picked from the brokerage reports of Nuvama, Choice Broking, Axis Securities, and JM Financial. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.