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Stock To Buy: This Multibagger Midcap IT Stock Grew 7.42% In 1 Week, Brokerage Sees Robust Returns

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Ashika Stock Broking has placed a 'buy' call on the stock of Coforge Limited for a decent upside in share price in near future. The brokerage has estimated a target price of Rs 4,850 per share for the stock. The brokerage sees a potential upside of up to 15% in the share price from its current level considering the given target price.

 

The share price is seen rebounding after a shallow retracement and a higher base at the 20 weeks DMA (currently placed at 3728 levels) thus offers a fresh entry opportunity with a favourable risk reward set up. One can expect the stock to maintain positive bias and head towards 4850 levels in the coming sessions as it is the 23.6% retracement of the entire rally since Mar'20. Key observation is that the stock has already taken support from the 50% retracement and crawled above the 38.2% retracement to form an elevated higher base.

Stock Outlook & Returns

Stock Outlook & Returns

Coforge is a mid-cap IT-Software sector stock having a market cap of Rs 25,833.88 crore. The stock on Friday closed at Rs 4,237.50 per share on NSE, 2.93% up as compared to its previous close. Its 52-week high level is Rs 6,135 and its 52-week low level is Rs 3,210.05, respectively. 

The stock surged 7.42% in 1 week, and 10.425 in 1 month, respectively. Whereas, in the past 3 months, it surged 22.2%. However, in the past 1 year, it fell by 21.73%. It has given 189.82% multibagger returns in the past 3 months and 571.18% massive multibagger returns in the past 5 years.

2QFY23
 

2QFY23

Coforge 2QFY23 numbers came ahead of consensus estimates with revenue grew by 6.2% QoQ on Constant currency basis amid strong demand environment. Company has a strong order intake of USD 304 million, with 11 new logos and two large USD 30 million+ deals. It witnessed healthy increase in the 12-month executable order book, which now stands at USD 802 million, 93% of which is from repeat businesses.

On segmental front, BFS continued to register strong growth. On geographical front, EMEA will continue to remain strong as it is concentrated to Banking and Travel with fewer and deep client relationships. The management has already identified the path to reach USD 2 billion run-rate and shared that the endeavor is to hit the target before the next five years. Further, company reported margin improvement during the quarter despite of macro challenges.

Disclaimer

Disclaimer

The stock has been picked from the brokerage report of Ashika Stock Broking. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.

 

Story first published: Sunday, December 4, 2022, 9:40 [IST]
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