Coforge Share Price Soars on Strong Q4 Results, Dividend, and Stock Split
On May 6, 2025, Coforge Limited’s share price experienced a significant surge, climbing nearly 7% to an intraday high of ₹7,999 on the BSE. This uptick followed the company’s announcement of robust Q4 FY25 earnings, a fourth interim dividend, and a forthcoming stock split. mint+3Outlook Money+3BizzBuzz+3Business Today
📊 Q4 FY25 Financial Highlights
- Net Profit: ₹261.2 crore, marking a 21% quarter-on-quarter (QoQ) and 16.7% year-on-year (YoY) increase.
- Revenue: ₹3,409.9 crore, up 4.6% QoQ and 47% YoY.
- Order Intake: $2.1 billion, including five large deals.
- 12-Month Executable Order Book: $1.5 billion, a 47.7% YoY increase. Business Today+2BizFinance News+2mint+2mint+1Business Today+1
💰 Dividend and Stock Split Details
- Dividend: Fourth interim dividend of ₹19 per share; record date set for May 12, 2025.
- Stock Split: 1:5 split (each ₹10 share split into five ₹2 shares); record date fixed for June 4, 2025. mint+2BizFinance News+2Business Today+2
📈 Analyst Insights and Future Outlook
Brokerage firms have responded positively to Coforge’s performance:Business News Today+1Outlook Money+1
- Motilal Oswal: Reiterated ‘Buy’ rating with a target price of ₹11,000, citing strong offerings in the BFSI sector and robust total contract value (TCV).
- Centrum Broking: Maintained ‘Buy’ rating with a revised target price of ₹9,331, acknowledging the company’s strong order book and repeat business.
- Antique Stock Broking: Upgraded FY26 and FY27 EPS forecasts by 4% and 3%, respectively, maintaining a ‘Buy’ rating with a target price of ₹9,650.
📢 Strategic Moves: What Sets Coforge Apart?
Beyond its Q4 earnings, Coforge’s current trajectory is fueled by several key strategic initiatives:
- Focus on High-Margin Sectors:
Coforge continues to concentrate on Banking, Financial Services, and Insurance (BFSI) — a segment that offers higher margins and consistent demand for digital transformation. - Investment in Generative AI & Cloud:
The company is actively investing in cutting-edge technologies like generative AI, automation, and cloud-native services, helping it stay competitive in the digital services space. - Global Expansion & Client Retention:
With a strong international footprint, Coforge has shown high repeat business, with over 92% of revenue coming from existing clients — indicating satisfaction and stickiness in its client base.
📉 Risks to Watch
While Coforge’s outlook is positive, investors should keep an eye on potential challenges:
- Global Macroeconomic Pressures:
A slowdown in the U.S. or Europe — key markets for IT exports — could impact discretionary tech spending. - Rupee Appreciation:
Since a large portion of Coforge’s revenue is dollar-denominated, a stronger rupee could weigh on margins. - Talent Retention:
Like all IT companies, Coforge continues to face competition for top talent in an increasingly tight labor market.
✅ Final Conclusion
Coforge is clearly emerging as a formidable mid-cap IT stock, combining strong quarterly performance, forward-looking technology investments, and shareholder-friendly initiatives like dividends and a stock split. Backed by a healthy order pipeline and a robust client base, the stock has become a favorite among analysts — with several projecting upside targets as high as ₹11,000.
For investors with a medium-to-long-term view, Coforge presents a compelling case as a growth and income-generating play in the digital transformation arena.
