Computer-software and consulting company, Coforge is a midcap that holds a strong dividend paying record over the past years. In FY25, Coforge announced its third interim dividend reward worth Rs 19 per share. Taking the total reward up to Rs 57 per share for the fiscal so far. On Thursday, January 23, Coforge share price emerged among top bulls on BSE and NSE, while skyrocketing by about Rs 1,100 or 13.5% after its Q3 performance.
Coforge Share Price:
After market hours on January 23, Coforge stock price closed at Rs 9200.80 apiece, up by Rs 975.70 or 11.9%. Overall, in the trading session, the stock skyrocketed by Rs 1,095 or 13.3% on BSE. The market cap is currently at Rs 61,515.98 crore. The stock is near its 52-week high of Rs 10,017.95 apiece. Also, from its 52-week low of Rs 4,291.05 apiece, the stock has more than doubled.
Coforge Q3 Results:
During Q3FY25, the company reported 10.3% year-on-year growth to Rs 268 crore in net profit, while revenue was at Rs 3,318.2 crore up 8.4% Q-o-Q and 42.8% Y-o-Y. In dollar terms, revenue stood at $ 397.1 million, higher by 7.5% Q-o-Q and 40.8% Y-o-Y in USD terms. In constant currency, revenue surged 8.4% Q-o-Q and 40.3% Y-o-Y. The company’s EBITDA reported strong growth of 29.3% YoY to Rs 519.0 crore.
Sudhir Singh, Chief Executive Officer and Executive Director of Coforge said, “A 8.4% sequential cc growth, a 40.3% cc YoY growth in a seasonally weak quarter, four large deals in that same quarter, a concurrent and material sequential expansion of 122 bps in margins, a Cigniti business that has already touched an EBITDA margin of 17.3%, a large deals pipeline that is looking very robust and finally an ever strengthening next twelve month signed order book which now is 40% higher YoY gives us confidence that the coming year shall once again see robust and sustained growth.”
Also, Coforge has announced that its subsidiary has agreed to enter into a Stock Purchase Agreement with Xceltrait Inc. and its stockholders (“Stock Purchase Agreement”) to acquire all of the outstanding shares of capital stock of Xceltrait Inc. for aggregate purchase consideration of approximately $ 17.85 Mn (“Proposed Transaction”) and completion of closing conditions and closing deliveries as per the Stock Purchase Agreement,
Coforge Dividend:
The tech player has declared its 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 2024-25.
Further, in terms of Regulation 42 of the SEBI Listing Regulations, as amended, the Board has fixed January 30, 2025, as the “Record Date” to ascertain the eligibility of shareholders for payment of the third interim dividend. Also, the payment of interim dividend would be done within 30 days from the date of declaration of the dividend.
Earlier, Coforge turned ex-dividend in October 2024 for its second interim dividend of Rs 19 per share, and before this, it was ex-dividend in August last year for its first interim dividend of Rs 19 per share for FY25.
Taking into consideration the upcoming third interim dividend and the prior two dividends, together, Coforge will be rewarded up to Rs 57 per share dividend for FY25.
Coforge Share Price Recommendation:
As per Trendlyne data, the consensus recommendation from 30 analysts for Coforge Ltd. is BUY. Of the total, 14 analysts have suggested STRONG BUY while 6 experts have recommended BUY on Coforge. EPS is expected to grow by 15.2% in FY25. However, the 1-year average target price is at Rs 8780.13 apiece, which signalled an over 4.5% potential downside.
About Coforge:
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.
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