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:

1. 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.
2. 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.
3. 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.