Latest news with #Coforge
Mint
16 hours ago
- Business
- Mint
Mid-cap IT companies set to outpace larger peers in Q1
India's mid-sized IT services firms, with annual revenues between $1 billion and $5 billion, are expected to outgrow their larger peers in the first quarter of FY26, driven by large deal wins, limited exposure to tariff-hit sectors, and better adoption of Gen AI. Companies, including LTIMindtree Ltd, Mphasis Ltd, Coforge Ltd, Persistent Systems Ltd, and Hexaware Technologies Ltd, are expected to report a sequential revenue growth between 0.6% and 9% for the three months ended June, according to at least five brokerages. In contrast, larger players like Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra are expected to grow around 3.5%. Wipro is likely to report up to a 2.5% decline due to weak European demand and subdued client spending. Infosys is expected to outperform its top peers. Coforge is expected to lead the midcap pack, buoyed by its $120-million annual contract with Sabre Corp., signed in March. Persistent Systems is projected to post 4.1% sequential growth, Kotak Institutional Equities said in a 30 June note. 'We believe that the quarter will be a mixed one, with mid-tier IT services companies reporting strong growth, while large IT companies and ERD (engineering, research and development) names will disappoint," said Kotak Institutional Equities analysts Kawaljeet Saluja, Sathishkumar S, and Vamshi Krishna. 'Smart deal structuring, share gains and favorable portfolio (low manufacturing exposure) will drive strong growth for mid-tier, with Coforge (+6.4% qoq) and PSYS (+4.1% qoq) leading the way," said the Kotak analysts. PSYS refers to Persistent Systems. Mid-caps capitalised on their ability to shape large deals and get higher revenue from banks and financial institutions. 'Key reasons for this outperformance of mid-caps vs. large-caps include: 1) the ability to proactively shape large deals and quickly tap into high-growth areas; and 2) a larger revenue share from the BFSI vertical, which seemingly is not as singed by the tariff-led macro friction," said ICICI Securities analysts Ruchi Mukhija, Aditi Patil, and Seema Nayak, in a note dated 1 July. Building momentum Analysts' optimism in mid-cap tech service providers comes on the back of stronger performance last fiscal year. Five of the country's eight mid-caps earning between $1 billion and $5 billion reported double-digit revenue growth last year, led by Coforge, which reported a 31% jump in revenue. This was in contrast to the top five, which reported a growth of 4.3% at best. Mid-cap companies scored big on deals wins, which eluded their larger peers in FY25. LTIMindtree landed its largest contract with US-based food processing and commodities trading company Archer-Daniels-Midland Co. (ADM) in May, while Coforge secured the Sabre deal in March. Leadership stability has further helped the mid-caps shine. CEOs at Coforge, Persistent, and Hexaware have each been in their roles for over five years, having previously worked at larger peers they now outperform. In contrast, TCS, Wipro, and Tech Mahindra have all seen recent leadership changes, with new CEOs serving for less than two years. Faster integration of GenAI is also giving mid-caps an edge. As reported by Mint on 7 May, these firms are more adept at embedding GenAI into services agile teams and better ability to change their business processes to clients' needs. Meanwhile, engineering R&D firms are bracing for a challenging quarter. At least two brokerages expect each of the ER&D firms including L&T Technology Services Ltd, Cyient DET, KPIT Technologies Ltd, Tata Elxsi Ltd, and Tata Technologies Ltd, to report a sequential revenue decline. These companies rely on business from carmakers. 'Auto ER&D are likely to face the brunt of tariff-led pauses," said JM Financial analysts Abhishek Kumar, Nandan Arekal, and Anushree Rastogi, in a note dated 30 June. The analysts added that these companies reflected 'elevated levels of uncertainty in their demand outlook." A tariff war sparked by US President Donald Trump has impacted companies and supply chains across sectors. Higher tariffs have made it tougher for companies, including car makers, to source raw materials for their businesses. A double whammy for global carmakers comes from cheaper Chinese vehicles, which are eating their market share.
Mint
a day ago
- Business
- Mint
Infosys, HCL Tech to TCS share prices: Is IT sector poised for a better H2CY25
Stock Market Today: HCL Technologies, Tata Consultancy Services, and Infosys share prices, among other IT stocks, have underperformed during the first half of the calendar year, led by concerns about the global economic growth. The proposed tariffs further added to the uncertainties, especially in developed markets such as the US and Europe. Not surprisingly, HCL Technologies, Tata Consultancy Services, and Infosys share prices have declined 10-17% during the year (year-to-date in 2025) despite the benchmark Nifty 50 Index having risen 7-8% in the calendar year to date. With expected rate cuts in the US, expected to aid economic recovery, the progress in trade deals is being watched carefully. Can the IT sector experience recovery in the second half? The sector faces challenges from global economic uncertainties, including potential US trade tariffs and macroeconomic headwinds in major markets such as the US and Europe. These factors are expected to weigh on growth prospects and may lead to a cautious approach in client spending, said Ajit Banerjee, President and Chief Investment Officer, Shriram Life Insurance. The Indian IT sector is poised for moderate growth in Q1 FY26. The performance will be influenced by global economic conditions and client spending behaviors, added Banerjee. Kotak Institutional Equities also believes that the quarter will be a mixed one, with mid-tier IT services companies reporting strong growth, while large IT companies and ERD names will disappoint. The operating performance and deal wins will be watched. Deal wins will be strong, although not necessarily net new for the industry, as per Kotak Institutional Equities. They also expect EBIT margins to be stable. Discretionary demand continues to be weak; however, few clients are proactive and want to be leaders in their sectors in terms of technology, said Banerjee. The deal pipeline remains strong, primarily consisting of large cost-efficient deals. While the financial services and energy & utilities verticals are expected to grow, manufacturing and retail & CPG verticals are likely to remain weak, said Banerjee. Outlook on deal signing in 2QFY26 and beyond will be crucial, feel analysts at Motilal Oswal Financial Services. While this environment is not conducive to discretionary spending, they expect client enthusiasm to pick up, as serious GenAI projects, especially around productivity gains, start picking up and clients shrug off the uncertainty to focus on critical upgrades. Smart deal structuring, share gains, and a favorable portfolio (low manufacturing exposure) will drive strong growth for mid-tier companies, as per Kotak Institutional Equities. They expect Coforge to lead the growth, followed by Persistent, Hexaware, and Mphasis. TCS, Wipro, and ERD names will likely face cuts in earnings growth after results as per Kotak. Infosys, Tech Mahindra, Hexaware, Coforge, and Indegene are Kotak's key picks In mid-caps, Coforge remains the top pick of MOFSL too, and they also like LTIMindtree Ltd., or LTIM, in an improving environment. Their top picks in the large-cap space remain HCL Tech and Tech Mahindra. Companies that effectively leverage advancements in generative AI and focus on cost-efficiency measures may be better positioned to navigate these challenges. Mid-tier companies are expected to outperform large caps in terms of growth. However, their cash flow conversion is weaker, client concentration is higher, and valuations are stretched, said Banerjee. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
25-06-2025
- Business
- Economic Times
Kalpataru IPO subscribed 30% on Day 2: GMP signals modest premium
Kalpataru's Rs 1,590 crore initial public offering (IPO) received a lukewarm response from investors on the second day of bidding, with overall subscription reaching just 30% as of 2:09 pm on Wednesday. ADVERTISEMENT The retail investor portion was subscribed 61%, followed by non-institutional investors (NIIs) at 37%. The qualified institutional buyer (QIB) category was subscribed 17%, while the employee quota saw a 31% subscription. In the grey market, Kalpataru shares are quoting a premium of Rs 8–9, indicating a potential 2% gain over the upper end of the issue price band. Also Read: These 10 multibagger penny stocks surged 200-570% in last 1 year. Do you own any?The IPO, priced between Rs 387 and Rs 414 per share, comprises a 100% fresh issue of 3.84 crore shares. Bidding will close on June 26, and the shares are expected to list on July 1. The company plans to utilise proceeds primarily to repay borrowings of itself and its subsidiaries, amounting to Rs 1,193 crore. Post-listing, promoter shareholding will decline from 100% to 81.3%.Founded in 1988, Kalpataru has developed over 25.9 million sq. ft. across Mumbai, Thane, Pune, Hyderabad, and other cities. It operates under the Kalpataru Group, known for its infrastructure and EPC expertise. Kalpataru focuses predominantly on high-end and luxury residential projects and holds land reserves of over 1,886 acres across Maharashtra, Gujarat, and Rajasthan. ADVERTISEMENT As of December 2024, it had 25 ongoing, six forthcoming, and five planned projects spanning 49 million sq. ft., with 95% of its portfolio concentrated in MMR and Pune. The company is also expanding through joint ventures and redevelopment in land-scarce MMR zones. Also Read: Coforge among 10 high-conviction stock ideas that can rally up to 52%Despite a strong project pipeline and brand value, the company reported low profitability—posting a PAT margin of just 0.3% and an ROE of 0.4% in 9MFY25. Adjusted EBITDA margin stood at 31.8%, but reported EBITDA was just 5%. Analysts cite high capitalized interest and a change in revenue recognition policy for the tepid profitability. ADVERTISEMENT At the upper band, the IPO values Kalpataru at 186.3x EV/EBITDA (FY25), significantly above sector averages. SBI Securities and KR Choksey have both assigned a 'NEUTRAL' rating to the IPO, citing high debt, valuation concerns, and need for sustained pre-sales traction post-listing to justify premium.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Business Standard
25-06-2025
- Business
- Business Standard
Coforge recognized as a Leader in Avasant's Airlines and Airports Digital Services 2025 RadarView™
Coforge has been recognized as a Leader in the prestigious Avasant Airlines and Airports Digital Services 2025 RadarView report. The report recognizes 20 tops-tier service providers supporting the airlines and airports industry in digital transformation. Significantly Coforge is the only mid-cap player in the industry to be featured as a leader providing strong industry specific digital solutions for Airlines and Airports (A&A) clients and leverages robust partnerships to codevelop innovative solutions. The report rates these firms on three parameters- Practice Maturity, Investments & Innovation and Partner Ecosystem. Coforge gets a 5-star rating in practice maturity with deep-domain expertise in delivering projects for over 60 airlines and 65 airports. The report also highlights that the firm has a team of experts who brings extensive experience in the domain, allowing Coforge to provide tailored solutions in areas such as modern airline retailing; e-commerce; web and mobile; loyalty management; revenue management; revenue accounting; and flight, crew, and airport operations. The report also highlights the range of generative AI solutions that Coforge has designed to be integrated throughout the A&A industry value chain. These include a knowledge management AI bot to support marketing and sales, a generative AI model for context-aware filtering of airport flight operation alerts, an AI-driven solution for airline fare discounts, and a generative AI-powered fraud detection system to combat fake airline bookings. Additionally, it offers an intelligent meal management system to enhance passenger experience, and a generative AI-based WhatsApp integration to streamline cargo operations. The sustainability management platform, Coforge ENZO, that enables accurate emissions tracking and management for A&A clients also gets a special mention in the report. Coforge also gets a 5-star rating in investments and innovations and its capabilities in delivering generative AI solution framework for sales, contact center, and knowledge management in A&A industry. Coforge also has been recognized for their industry leading partnerships with major hyperscalers and cloud providers as well as the work the firm does with the two major Global Distribution System providers in the travel industry.
Business Upturn
23-06-2025
- Business
- Business Upturn
Coforge collaborates with Duke's Fuqua School to advance generative AI in enterprises
By Aman Shukla Published on June 23, 2025, 11:50 IST Coforge Limited , a global digital services and solutions provider, has collaborated with Duke University's Fuqua School of Business to drive the adoption of Generative AI across industries. Through this collaboration, Coforge and Fuqua's students worked together to identify impactful AI use cases that can transform enterprise operations. As part of the Fuqua Client Consulting Practicum (FCCP), students conducted in-depth research under the guidance of faculty and Coforge's business and technology experts. The focus areas included the application of Generative AI in wealth management, travel, and customer service. This hands-on engagement allowed students to apply academic knowledge to real-world business scenarios, generating valuable strategic insights. The joint efforts resulted in consultative frameworks designed to help enterprises leverage Generative AI for digital transformation. Vic Gupta, Executive Vice President, Coforge, stated, 'Duke University and the Fuqua School of Business has a very strong technology curriculum and attract the best minds from across the world for its management program. Collaborations with universities provide us with bright individuals who bring in creative thinking and fresh approach to industry challenges, guided by the faculty members and mentored by industry experts at Coforge, we collectively build real world solutions for our clients.' Coforge continues to collaborate with global universities and research labs to foster innovation in AI, machine learning, and data-driven technologies, offering students practical exposure to complex business challenges. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
