640% Dividend In FY23: IT Stock Declares Rs 19/Share 3rd Interim Dividend; Buy?

With a market valuation of Rs 38,289 Cr, Coforge Ltd. is a large-cap company in the IT industry. Coforge is a multinational provider of digital services and solutions, with 26 delivery centers dispersed over nine countries and a presence in 21 countries. Following the announcement of the Q3 results and the third interim dividend of Rs 19 per share for FY24, the IT stock will be the focus of the market watchers.

Coforge Dividend

"The Board of Directors at their meeting held today on January 22, 2024, has declared Third Interim Dividend of Rs. 19/- (Rupees Nineteen only) per Equity Share of the Company having face value of Rs. 10/- each fully paid-up, for the Financial Year 2023-24 and February 05, 2024, 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 LIMITED has announced an equity dividend of 640.00% at a face value of Rs 10 for the year ended in March 2023, or Rs 64 per share. The dividend yield at the current share price of Rs. 6214.50 is 1.03%. For the past five years, the firm has regularly handed out dividends and has a strong dividend track record. Since July 15, 2005, Coforge Ltd. has announced 28 dividend payments, according to Trendlyne.

Coforge Financials

The IT company Coforge reported its October-December quarter results on Monday, showing a 31 per cent rise in net profit from the previous quarter's Rs 181 crore to Rs 238 crore. This was generated during the quarter ending in September 2023. When compared to the same quarter previous year, Coforge's net profit climbed 4.2% YoY from Rs 228.2 crore. The company's revenue from operations increased by 2% during Q3FY24 from Rs 2,276.2 crore in Q2FY24 to Rs 2,323.3 crore. The firm generated Rs 2,055.8 crore in revenue from operations in the year-ago quarter.

"Coforge this year is likely to be one of the very few firms that gave a clear growth guidance at the beginning of the year and shall deliver within that revenue guidance range. Our ability to deliver on an annual revenue guidance commitment in such a tough year and the fact that at the end of Q3 our YTD organic cc revenue growth is 14.7 percent is a testament to the tenacity of Team Coforge and in our ability to execute against plans" said Mr. Sudhir Singh, Chief Executive Officer, Coforge Ltd.

Coforge Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said COFORGE has recently achieved a notable breakthrough, surpassing the critical resistance zone spanning from 4800 to 5700 on the daily chart. This significant breakout has been complemented by a consolidation of upward movement, highlighted by the attainment of 52-week highs. The stock's current trajectory reflects a strong bullish sentiment, further substantiated by a discernible surge in trading volume.

Key technical indicators, with a particular emphasis on the Relative Strength Index (RSI), accentuate the positive momentum in COFORGE. The RSI not only signals favourable trends but also aligns with the stock trading above key moving averages, including the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength in COFORGE's price action.

In light of this analysis, we recommend considering COFORGE for a cash buy, particularly during any potential dip within the range of 5800-5700. Setting a target at 7600 and implementing a stop loss at 5200 forms a prudent risk management strategy, especially catering to investors who entered the market at lower levels. In conclusion, the technical analysis paints a promising outlook for COFORGE, indicating the potential for further upward movement and fostering confidence among investors.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.