Coforge Share Price: Q1 Results Impact, Stock Analysis, and Future Outlook
Coforge shares fell nearly 9% despite reporting a 21% YoY jump in Q1 profit. Here is a detailed analysis of the company’s performance, share price trends, and what lies ahead for investors.
Table of Contents
Introduction
Coforge Limited, a leading mid-cap IT services firm, announced its Q1 FY25 results, surprising investors with strong profitability yet witnessing a sharp decline in share price. This article analyses the earnings breakdown, market sentiment, and future expectations for the stock.
Coforge Q1 Results FY25: Key Highlights
Net Profit: ₹226.5 crore, up 21% YoY
Revenue: ₹2,358.5 crore, a 14% increase YoY
EBIT Margin: 14.3%, improved sequentially
Order Intake: Highest-ever quarterly order intake of $531 million
New Clients: Added 5 new logos in the quarter
Why Did Coforge Share Price Fall Despite Profit Growth?
Despite strong results, Coforge’s share price fell nearly 9% today due to:
Weak Revenue Guidance: The company lowered its FY25 revenue growth guidance to 12-14% from earlier 15-17%.
Macroeconomic Headwinds: Clients are delaying discretionary spending amid global uncertainty.
Valuation Pressure: At 27x forward earnings, analysts believe valuations were stretched.
Market Reactions and Brokerages’ Views
Motilal Oswal: Maintains Neutral rating with a target of ₹5,400, citing limited upside.
ICICI Securities: Downgraded to Hold due to muted growth visibility despite strong execution.
HDFC Securities: Believes order book remains strong but near-term revenue headwinds persist.
Coforge Share Price Today: Live Updates
As of the latest trade:
BSE: ₹4,890, down 8.75%
NSE: ₹4,888, with high volumes indicating profit booking
The fall also dragged mid-cap IT stocks, reflecting broader sector concerns.
Technical Analysis: Support and Resistance Levels
Key Support: ₹4,750
Immediate Resistance: ₹5,100
50-Day Moving Average: ₹5,050
200-Day Moving Average: ₹4,680
A break below ₹4,750 may trigger further downside towards ₹4,600 levels.
Coforge Share Price Target 2025
Brokerage consensus indicates:
Bullish Target: ₹6,000+ (If discretionary spending recovers by FY26)
Neutral Target: ₹5,300-5,500 (If growth remains stable at 12-14%)
Bearish View: ₹4,400 (If macro headwinds worsen)
Investor Strategy: Hold, Buy or Sell?
Investors should:
- Hold existing positions if invested for the long term due to strong order book.
- Avoid fresh entry until a clear reversal is seen above ₹5,100.
- Monitor global IT spending trends for better clarity on sector growth revival.
FAQs
Q1. Why is Coforge share price falling today?
Due to lowered FY25 revenue guidance despite a 21% YoY profit jump, triggering profit booking.
Q2. What is Coforge’s revenue growth guidance for FY25?
The company guided for 12-14% revenue growth, revised down from earlier 15-17%.
Q3. Is Coforge a good buy now?
Analysts suggest waiting for stability above ₹5,100 for fresh entry. Long-term investors can hold.
Q4. What was Coforge’s Q1 FY25 net profit?
₹226.5 crore, up 21% compared to the previous year.
Helpful Resources
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Conclusion
Coforge’s Q1 FY25 results showcased robust operational performance. However, revised revenue guidance and macro uncertainties led to sharp profit booking. While fundamentals remain strong, near-term cautiousness is advised. Long-term investors may view corrections as accumulation opportunities, but fresh investments should be timed post technical confirmation.
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