IT Stock Coforge Sets Record Date For Rs 19/Share Dividend; Buy?

A large-cap corporation operating in the IT industry is Coforge. A prominent provider of international IT solutions, Coforge Limited (NSE: COFORGE) today announced its financial results for the quarter ended September 30, 2023 (Q2 FY24). Along with the result announcement the company has also declared a second interim dividend of 190% at a face value of Rs 10 for the eligible shareholders.

Coforge Dividend

"Board of Directors at their meeting held today on October 19, 2023 has declared Second Interim dividend of Rs. 19/- (Rupees Nineteen only) per Equity Share of the Company at the face value of Rs. 10/- each fully paid-up, for the financial year 2023-24 and November 02, 2023 has been fixed as Record date for the purpose of ascertaining the eligibility of shareholders for payment of interim Dividend," said Coforge in a stock exchange filing.

Coforge Q2 Results

Coforge Ltd. reported on Thursday that its consolidated net profit for the quarter ended in September 2023 fell 10% QoQ to Rs 181 crore from Rs 165.30 Cr in Q1FY23. According to a regulatory filing by Coforge, the company reported a net profit of Rs 201 crore in the second quarter of FY23. According to the company, its consolidated revenue climbed 16% to Rs 2,276 crore in Q2FY24 up by 2.5% YoY from Rs 1,959 crore in Q2FY23.

The company's revenue gained Q-o-Q by 2.3% in constant currency, 2.3% in USD and 2.5% in INR terms and revenue surged Y-o-Y by 14.1% in CC, 12.6% in USD and 16.2% in INR terms. With an operating margin of 11.6%, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) was Rs 263.7 crore in Q2FY24. The company affirms that its adjusted EBITDA margin would be at levels comparable to FY23 and that its annual revenue growth projection for fiscal year 2024 is 13% to 16% in constant currency terms. It additionally reiterated that its gross margin will improve by 50 basis points compared to FY23.

"At the end of the first half, the firm has grown 16.2% in CC terms despite a very challenging market context. This reflects once again, the exceptional executional intensity and commitment of all members of Team Coforge." said Mr. Sudhir Singh, Chief Executive Officer, Coforge Ltd.

Coforge Share Price Target

Ameya Ranadive CMT CFTe Equity Research Analyst, Choice Broking said, that "Coforge, currently quoted at 5204, has displayed a noteworthy resurgence from its support levels, indicating substantial underlying strength. Following a measured period of profit booking around the 5620 level, the stock has found solid support at a pivotal base. The ADX reading of 22 suggests a well-balanced momentum in the stock's movement, highlighting a steady and sustainable trajectory. Concurrently, the RSI, currently positioned at 52 with a positive crossover, signifies a notable shift in investor sentiment towards a more bullish outlook."

"Furthermore, the stock's trading activity is noteworthy as it continues to maintain levels above its short-term (20-day), mid-term (50-day), and long-term (100-day and 200-day) Exponential Moving Averages, underscoring a robust technical posture. Notably, a minor resistance level at 5280 is anticipated, and once breached, it could act as a catalyst for a significant upward surge. Upon surpassing this level, there is potential for a swift upmove, potentially reaching levels between 5550 and 5600. These technical indicators and price action paint an optimistic outlook for Coforge," said Ameya Ranadive.

Disclaimer

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