Archive · 7 Jan 2026
PL Capital Initiates Coverage on Coforge with Buy Rating
PL Capital, a brokerage firm, started watching Coforge, a company that provides technology services.
They gave Coforge a 'BUY' rating, which means they think it's a good time to invest in the company.
They believe Coforge can grow by about 32% and set a target price of Rs 2,140.
PL Capital likes that Coforge has a lot of big clients and is doing well in areas like banking, healthcare, and travel.
They also mentioned that Coforge has a lot of work lined up, which means they have good visibility for future revenue.
However, they think the company's profits might not grow much in the short term because of some costs and loans they need to pay back.
PL Capital initiated coverage on Coforge Ltd with a 'BUY' rating and target price of Rs 2,140, citing strong growth visibility and a robust deal pipeline.
Coforge posted an organic CAGR of around 14% over FY20–25, led by strong traction in BFSI, TTH, and healthcare.
The company's executable order book of nearly $1.6 billion provides revenue visibility of close to 80%.
Coforge secured 10 large deals in the first half of FY26, reflecting confidence in sustained mid-teens organic growth.
Operating margin is likely to remain around 14% in the medium term due to higher amortisation and limited near-term growth within Encora.
- Who
- PL Capital
- What
- Initiated coverage on Coforge Ltd with a 'BUY' rating and target price of Rs 2,140
- When
- Not specified
- Where
- Not specified
- Why
- Citing strong growth visibility, robust deal pipeline, and strengthening client base
- Company
- Coforge Ltd
- Brokerage
- PL Capital
- Rating
- BUY
- Target Price
- Rs 2,140
- Potential Upside
- 32%
- Organic CAGR (FY20–25)
- 14%
- Revenue Visibility
- 80%
- Executable Order Book
- $1.6 billion