The brokerage has a target price of ₹2,080, adjusted for the 1:5 stock split, implying a potential upside of 20%.
JPMorgan has named Coforge as its top pick in the Indian IT space, backed by multiple growth drivers.
Here are four key reasons behind the bullish view:
1) A recent analysis of earnings commentary from 30 global clients across the Indian IT sector shows no deterioration in IT spending. With low risk of earnings downgrades, the sector presents an attractive investment backdrop.
2) FY26 organic growth is expected to outpace FY25’s 15.5%, which is uncommon across the IT sector.
3) Coforge is expected to outperform both mid- and large-cap peers over FY25–27, with an estimated CAGR of 19% in revenue and 25% in earnings.
Midcaps: 11% revenue / 17% earnings
Largecaps: 6.5% revenue / 9.5% earnings
4) Coforge is trading at 33x FY27 estimated P/E, translating to a PEG ratio of 1.7x, which is lower compared to the 2-3x PEG multiples of most mid- and large-cap peers.
Of the 38 analysts that have coverage on the stock, 24 have a ‘Buy’ rating, four have a ‘Hold’ rating and 10 have a ‘Sell’ rating.
Shares of Coforge Ltd. are trading 2.61% higher on Thursday at Rs 1,769.50. The stock is down 8% so far in 2025.
