Despite its stock price declining 20% so far in 2025, Coforge is the fourth-best performing stock on the Nifty IT index, as its peers have fared far worse. Shares of Wipro, TCS, Infosys have declined between 25% to as much as 34% on a year-to-date basis.
CLSA wrote in its note that Coforge is among the top 10 Indian IT services companies by revenue and gets two-thirds of its overall topline from financial services and travel verticals.The strong execution capabilities that the management has built in these verticals is showing up in the company’s strong order book, revenue and earnings growth, CLSA wrote in its note.
Coforge is likely to see its revenue grow at a Compounded Annual Growth Rate (CAGR) of 15% over financial year 2026-2028, while its Earnings Before Interest and Tax (EBIT) and Earnings Per Share (EPS) will see a 16% and 22% CAGR over the same timeframe respectively, according to CLSA.
Out of the 39 analysts that have coverage on Coforge, 28 of them have a “buy” rating, four say “hold”, while seven have a “sell” rating. CLSA already has a “high-conviction outperform” rating on Coforge’s peer, Persistent Systems.
Shares of Coforge ended 0.5% higher on Monday at ₹1,547. The stock is down 12% in the last one month.
