Stocks to buy: Brokerage firm Motilal Oswal Financial Services Limited (MOFSL) has repeated its ‘Buy’ rating on the IT company Coforge. He has set a price target of ₹ 2,240 for coforge. From the current ₹ 1,733 share price, it shows the possibility of about 29% upside.
MOFSL says that stable clients in Koforge’s strong executive order books and different verticles will strengthen the company’s organic business. The company is a target of signing at least 20 deals with a value of more than $ 20 million in FY26. 5 of these have already been completed. The win rate of practical proposals is 40–45%.
Margin guidance and valuation
Koforge has given 14% (reported) Ebit margin guidance for FY26. Management believes that this is enough to speed up growth. However, due to aggressive investment in capacity expansion and acquisitions, the company’s free cash flow (FCF) growth is backward from mid-cap and large-cap rivals.
Nevertheless, Koforge’s management hopes that there will be a significant improvement in cash flow conversion later. Motilal Oswal has evaluated Koforge at 38 times its FY27 estimated per share income (EPS).
The condition of shares of Koforge
Koforge’s stock fell 0.36% to close at ₹ 1,733 on Thursday. In the calendar year 2025, the stock is about 10% below. However, in the last 1 year it has given a strong return of 38.52%. Talking about the last 5 years, Koforge has given a multibagger return of 332.94%. The market cap of Koforge is ₹ 10.74 thousand crore.
What is the business of Koforge?
Koforge is a midcap IT services company that provides technology solutions to sectors such as banking-financial services, insurance, travel, transportation and healthcare.
The company’s focus is on providing high-value services such as digital transformation, cloud services, data analytics and automation to clients. Also, it strengthens its order book and revenue base by signing large -scale IT projects and multimilian dollars deals.
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