Coforge Profit Rises 17% to ₹261.2 Crore; Company Announces ₹19 Per Share Dividend and 1:5 Stock Split; Brokerage Sets ₹11,000 Target Price.
IT Stock: Leading IT company Coforge Ltd. surprised investors with a b performance in the March quarter. The company reported a year-on-year increase of 17% in profit, reaching a net profit of ₹261.2 crore, compared to ₹223.7 crore in the same quarter last year. This figure stood at ₹215.5 crore in the December quarter.
Share Price Surges 6.6%
Driven by Coforge's b quarterly results and announcements, its shares surged 6.6% on May 6th, reaching an intra-day high of ₹7,565.65 on the BSE. It closed at ₹7,499 on Monday.
Dividend and Stock Split Benefit Investors
The company declared a fourth interim dividend of ₹19 per share on each ₹10 face value share for the fiscal year 2024-25. The record date is set for May 12, 2025.
Furthermore, the company announced a 1:5 stock split, where one share with a ₹10 face value will now be divided into five shares of ₹2 each. The record date for this is June 4, 2025.
Brokerage House Opinion
Brokerage firm Motilal Oswal maintained a 'Buy' rating on Coforge and set a target price of ₹11,000. This is approximately 47% above the current share price. The brokerage believes that the company's b order book and consistent demand from clients across various sectors will drive its future growth.
- Similarly, JM Financial has given a 'Buy' rating on Coforge and increased its target price from ₹9,610 to ₹10,000.
- Mirae Asset Sharekhan has set a target price of ₹10,490 for the share, potentially offering a return of around 40%.
Q4 Results and Growth Analysis
In the quarter ended March 2025, Coforge's operating income was ₹3,409.9 crore, compared to ₹2,318.4 crore in the same quarter last year—a growth of 47%.
This growth was recorded at 43.8% in constant currency and 43.6% in USD.
