Rs 19/Share Dividend: IT Stock To Trade Ex-Dividend In 4-Days, Should You Buy?

Mid cap IT Software sector company Coforge Ltd shares declined 1.26% intraday today (February 1, 2024). Coforge shares are scheduled to trade ex-dividend for Rs 19/share dividend on February 5, 2024. Coforge shares rallied 42% in last 1-year and gained 155% in last 3-years.

Leading brokerage firm Axis Securities has assigned buy call to Coforge stock with target price of Rs 6,905 per share. Motilal Oswal has recommended neutral rating to the scrip with target price of Rs 6,600 apiece. Check details below:

Motilal Oswal Recommends Neutral Call For Coforge: According to the analyst, "We, however, believe that the robust outlook is already factored into the price, and we do not see any potential upside from here. Our TP of INR6,600 implies 30x FY26E EPS. We reiterate our NEUTRAL rating on fair valuations."

Axis Securities Recommend Buy: According to the brokerage firm, "Given the company's strong growth potential backed by robust deal wins and superior execution capabilities, we recommend a BUY rating on the stock." The analyst has assigned the target price of Rs 6,905/share (Earlier TP: Rs 5,615/share).

Coforge Interim Dividend & Record Date: According to the regulatory filing of the company dated January 22, 2024, "The Board of Directors at their meeting held today on January 22, 2024, has declared Third Interim Dividend of Rs. 19/- (Rupees Nineteen only) per Equity Share of the Company having face value of Rs. 10/- each fully paid-up, for the Financial Year 2023-24 and February 05, 2024, has been fixed as Record Date for the purpose of ascertaining the eligibility of shareholders for payment of Interim Dividend."

Coforge Q3 Results: The exchange filing of the company stated, "The Company reported strong operating and financial performance marked by robust growth, margin expansion and continued business momentum in a seasonally weak quarter." It reported revenue for the quarter at INR 23,233 million and $282 million. Revenue surged QoQ by 1.8% in constant currency, 1.4% in USD and 2.1% in INR terms and Revenue soared YoY by 12.0% in CC, 12.0% in USD and 13.0% in INR terms. The company announced EBITDA margin at 17.3%, improved by 201 bps QoQ while adjusted EBITDA margin stood at 18%, improved by 39 bps QoQ. Coforge's consolidated profit after tax (PAT) for Q3 declared at INR 2,380 million, up 31.5% Q-o-Q.

As per the BSE filing of Coforge, "Order intake was $354 million, eight consecutive quarters of $300+ million deal wins. Total order book executable over the next 12 months was at $974 million, up 15.8% YoY as 7 new clients were added during the quarter. LTM attrition at 12.1%."

"Coforge this year is likely to be one of the very few firms that gave a clear growth guidance at the beginning of the year and shall deliver within that revenue guidance range. Our ability to deliver on an annual revenue guidance commitment in such a tough year and the fact that at the end of Q3 our YTD organic cc revenue growth is 14.7 percent is a testament to the tenacity of Team Coforge and in our ability to execute against plans" said Sudhir Singh, Chief Executive Officer, Coforge Ltd.

Coforge Shares Performance & Return: Last trading price of Coforge shares on BSE is Rs 6170.70 apiece. The 52-week high price of Coforge shares on BSE is Rs 6,788.00 apiece and 52-week low price is Rs 3565.20 apiece, respectively. Its market capitalisation of Rs 38,105.58 crore. Coforge shares fell 5% in last 2-weeks and declined 0.31% year-to-date. Coforge stock jumped 27% in last 6-months, soared 42% in last 1-year, and gained 23% in last 2-years. Coforge shares rallied 155% in last 3-years and 368% in last 5-years.

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 report of Motilal Oswal and Axis Securities. 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.