Coforge Share Price Today: Midcap IT stock Down 2.5% Even as Brokerage Sees 54% Rally; Time To Buy-On Dip?

Coforge Share Price Today: Shares of Coforge Limited remained under pressure on Tuesday, even after brokerages gave a bullish call on the midcap IT stock. Given Coforge's strong organic growth outlook due to executable order book and resilient spending, Motilal Oswal has indicated a strong 54% upside in its share price.

Coforge shares were trading 3.17% lower at Rs 1890 per share on BSE with a market capitalisation of Rs 63,276.17 crore at 9:30 am. The stock had touched an intraday high of Rs 1942 per share and an intraday low of Rs 1880 per share during the early trading hours on Tuesday.

Coforge Share Price Recommendation

Coforge's strong executable order book and resilient spending across verticals will benefit the company's long-term growth. The cross-selling opportunities in Cigniti can also benefit the company.

Considering the positive growth outlook of the company, Motilal Oswal reiterated its 'Buy' rating for Coforged with a target price of Rs 3,000 per share. "We continue to view Coforge as a structurally strong mid-tier player wellplaced to benefit from vendor consolidation/cost-takeout deals and digital transformation. We value Coforge at 38x FY28E EPS with a TP of INR3,000, implying a 54% potential upside. Reiterate BUY," stated the brokerage in its report on Tuesday.

Overall four key factors will fuel Coforge's growth in the long-term including emphasis on artificial intelligence (AI), focus on structuring large contracts through proactive deals, scaling up key accounts, and strategic acquisitions, highlighted Motilal Oswal in its report.

Coforge Share Price Trend

Coforge shares opened in red on Tuesday. The IT stock had touched a 52-week high of Rs 2,003.59 per share on 30 December, 2024. Whereas, the stock had dipped to its 52-week low mark of Rs 1,190.84 on 7 April, 2024. Its return on equity (ROE) stood at 12.51%. The stock valuation has declined over 2.53% year to date (YTD).

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