Large deal momentum, improving profitability keep Coforge stock buoyant
Remove Ads
The stock of Coforge has gained 13% since May 05 compared with 5% increase in the BSE IT index after the mid-tier IT exporter reported strong sequential revenue growth, expansion in operating margin and record deal wins for the March quarter. Amid strong growth in dew deals in FY25, the company has retained the $2 billion revenue target for FY27 compared with a revenue of $1.4 billion in FY25, notwithstanding the uncertainty in the revival of discretionary projects.Coforge is a global IT solutions provider employing 33,497 professionals and present across 23 countries. The US is its biggest market, contributing 54% to the revenue in FY25. It earns around 30% revenue from the banking and financial services (BFS) vertical, over 18% each from travel, transportation, hospitality (TTH) and insurance. The company is fully owned by public shareholders and therefore doesn't have any promoter group.The company reported a record order intake of $2,126 million for the March quarter, aided by a large multi-year deal with the US based Sabre Corporation, a travel technology company. In March, Coforge bagged a 13-year $1,560 million deal with Sabre to accelerate the latter's product delivery. Even after excluding this mega deal, Coforge still reported 13% sequential increase in the deal wins at $566 million. The company's management expects to sustain the momentum in large deals. The executable order book over the next 12 months increased by 48% year-on-year to $1,505 million.While the company's operating margin (EBIT margin) fell by 50 basis points year-on-year to 13% in FY25, it reported quarterly improvement in the fourth quarter of the fiscal year. The margin expanded by 120 basis points to 13.2%. The company expects to improve the margin to 14% by the end of FY26.Unlike majority of the larger peers, Coforge reported lower employee attrition rate for the March quarter. The attrition contracted to 10.9% from 11.9% in the December quarter and 11.5% in the year-ago quarter. Despite lower attrition, it continued to hire employees – the net headcount addition was 8,771 in FY25.JM Financial Research expects earnings of Coforge to increase by 25% annually between FY25 and FY28. The brokerage has revised the stock's target price to Rs10,000 from Rs9,610. The stock was last traded at Rs 8,465.2 on Tuesday on the BSE.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
11 minutes ago
- Time of India
Chandigarh's vehicle scrapping policy stuck in 1st gear
Despite a full tank of incentives, Chandigarh's vehicle scrapping policy is sputtering. Launched over 18 months ago with the promise of cleaner roads and greener air, the city's Registered Vehicle Scrapping Facility (RVSF) has managed to scrap just 3,159 private vehicles—a drop in the ocean compared to the 50,000 new vehicles registered last year. By October last year, only 1,065 private vehicles were scrapped. "There is a marginal increase in the rate of vehicles getting scrapped, but it is still very low. There was an expectation that the policy with monetary incentives built-in would attract more vehicle owners," said a UT official. Vehicles registered with the 'Certificate of Deposit' receive a rebate on the registration of new vehicles. Transport vehicles get a 15% rebate, and non-transport vehicles get a 25% rebate on registration. The Certificate of Deposit is issued by the RVSF after the old vehicle is scrapped. Additionally, the scrap value of the vehicle is paid by the authorised scrapping agency. As per the information shared by the Ministry of Road Transport and Highways in the Lok Sabha during the ongoing monsoon session of Parliament, 5,068 govt vehicles were scrapped at the RVSF. By October last year, 2,500 govt vehicles were scrapped at the RVSF. "While it is mandatory for govt vehicles to be scrapped at the RVSF after 15 years in service, for private vehicles in the city, it is still a voluntary exercise. Around 50,000 vehicles were registered last year, but in one and a half years, only about 3,000 vehicles were scrapped. Most vehicle owners get the life of their vehicles extended by repeatedly getting them passed," said a UT official. The passing of a vehicle after 15 years is done manually in the city. "In-depth testing of the vehicle is not possible manually, so most vehicles get passed. Automated and mechanical testing is required to filter out the road-unworthy vehicles, which can then be scrapped," said the official. AICC start to push up scrapping of pvt vehicles The UT officials contend that the start of Chandigarh's first automated inspection and certification centre , likely to be in the next financial year, will bring in scientific testing of old vehicles. The centre, coming up at a cost of around Rs 14 crore on a 3.5-acre plot in Raipur Kalan, will check the technical quality of the vehicle, whether it meets the environmental stipulations, and its roadworthiness. "Currently, the process of checking the roadworthiness of a vehicle involves a lot of human discretion. Sometimes it results in even vehicles in poor condition getting roadworthiness certificates. But after the centre starts operations, the entire process will be automatic. In total, a vehicle will be tested against 23 parameters," said the official. The registration of vehicles beyond 15 years depends on their roadworthiness. If the vehicles are not roadworthy, they have to be scrapped at the registered RVSF. "Vehicles that continue to be operated for two years even without mandatory passing after they complete the 15-year service period can be impounded and sent for scrapping," said the official.
NDTV
11 minutes ago
- NDTV
Rs 295 Crore Spent On PM Modi's Foreign Visits From 2021 To 2024: Centre
New Delhi: Over Rs 67 crore was incurred on Prime Minister Narendra Modi's visit to five countries, including the US and France, in 2025, while the total expenditure figures related to his foreign trips from 2021 till 2024 stood at nearly Rs 295 crore, according to data shared by the government. As per the country-wise and year-wise data, the corresponding figures for PM Modi's visits to Mauritius, Cyprus, Canada and Croatia, and Ghana, Trinidad & Tobago, Argentina, Brazil and Namibia this year were not available. For these visits, the column for 'total expenditure' in the data shared by Minister of State for External Affairs Kirti Vardhan Singh on Thursday, in his written response to a query by Trinamool Congress MP Derek O'Brien in Rajya Sabha, said -- "Bills under settlement. Total expenditure not yet available." Of these visits, the costliest one was to France, which incurred over Rs 25 crore, while the one PM Modi undertook to the US in June 2023 incurred over Rs 22 crore. On March 20, the ministry had shared data in in Rajya Sabha, according to which nearly Rs 258 crore was incurred on 38 foreign visits of PM Modi between May 2022 and December 2024. In 2025, PM Modi had travelled to France and the US from February 10-13. In Paris, he held bilateral talks with President Emmanuel Macron and attended an AI Summit, while in the US he met and held talks with President Donald Trump, among other engagements. According to the data shared, the country-wise figures for these five countries PM Modi visited in 2025 are -- Rs 25,59,82,902 (France); Rs 16,54,84,302 (US); Rs 4,92,81,208 (Thailand); Rs 4,46,21,690 (Sri Lanka) and Rs 15,54,03,792.47 (Saudi Arabia). The cumulative figures for the preceding four years are -- about Rs 109 crore (2024) spanning 16 countries including Russia, Ukraine, the US and Brazil; nearly 93 crore (2023); Rs 55.82 crore (2022) and about Rs 36 crore (2021). In 2021, PM Modi visited Bangladesh (Rs 1,00,71,288 -- total expenditure); the US (Rs 19,63,27,806); Italy (Rs 6,90,49,376); and the UK (Rs 8,57,41,408) according to data shared by Singh in his response. His trips in 2022 included visits to Germany (Rs 9,44,41,562 -- total expenditure); Denmark (Rs 5,47,46,921); France (Rs 1,95,03,918); Nepal (Rs 80,01,483) and Japan (Rs 8,68,99,372), it said. The details related to public engagements, number of attendees, and expenditure on advertising and broadcasting of engagements were also shared in another set of tabulated data. For PM Modi's 2023 visit to Egypt, the expenditure on advertising and broadcasting was Rs 11.90 lakh, according to the data.
Economic Times
11 minutes ago
- Economic Times
NSDL IPO set to open on July 30, price band fixed at Rs 760-800. Check GMP ahead of issue, other details
NSDL IPO: NSDL shares are trading at a strong grey market premium (GMP) of 18.13%, or ₹145–₹155, ahead of its IPO set to open on July 30. NSDL IPO: NSDL revealed the price band for its IPO, setting it at ₹760–₹800 per share. The lot size is 18 shares, requiring a minimum investment of ₹14,400 for retail investors. The total issue size is estimated at ₹4,011.6 crore. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The shares of National Securities Depository Limited (NSDL) are trading at a healthy grey market premium (GMP) of 18.13% or Rs 145-155 ahead of its initial public offering ( IPO ), opening on July today, NSDL announced the price band for the issue. The depository has fixed the price band at Rs 760–800 per share, with a lot size of 18 shares, amounting to a minimum investment of Rs 14,400 for retail investors. The total size of the issue is estimated at Rs 4,011.6 refers to the premium at which shares of an upcoming IPO are traded in the unofficial grey market before their official listing on the stock exchange. It indicates the difference between the IPO price and the price at which the shares are being bought or sold unofficially.A positive GMP indicates strong investor demand and the potential for listing gains, while a negative GMP suggests weak sentiment. Though commonly tracked by investors, GMP is speculative and not regulated by any IPO will consist solely of an Offer for Sale (OFS) of up to 5.01 crore equity shares by existing shareholders, which include IDBI Bank , NSE, Union Bank of India HDFC Bank , and SUUTI. NSDL will not receive any proceeds from the Bank is selling about 2.22 crore shares, NSE is selling 1.8 crore shares, while Union Bank is offloading 5 lakh shares in the is targeting a valuation of approximately Rs 16,000 crore through the IPO. The company initially filed its Draft Red Herring Prospectus (DRHP) with SEBI in July 2023 and later submitted an addendum in May 2025, reducing the issue size from 5.72 crore shares to 5.01 crore shares. NSDL IPO will open for public subscription on July 30 and close on August 1. Anchor investors can bid for the IPO on July 29. The allotment of shares will likely take place on August 4, with the listing tentatively scheduled for August a slowdown in primary market activity due to the broader market correction, NSDL's financial performance remains robust. In Q3 FY25, the company reported a 29.82% year-on-year increase in consolidated net profit to Rs 85.8 crore, while total income rose by 16.2% to Rs 391.21 crore.
