Coforge shares soars 6% after JP Morgan sees more upside, bets on growth and margin expansion

The brokerage said it remains confident about Coforge’s industry-leading growth prospects and margin expansion. It also noted that the company’s management was bullish, with no signs of macroeconomic headwinds that have impacted its peers.

JP Morgan further highlighted that large deals secured in FY25 are locked in, and the company’s deal pipeline remains robust.

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Coforge recently completed its first-ever share split in a 1:5 ratio. It began trading on an ex-split basis last week, with June 4, 2025, as the record date. Each equity share of face value Rs 10 has been split into five equity shares of Rs 2 each.

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For Q4FY25, the company reported a 17% year-on-year (YoY) rise in consolidated net profit to Rs 261 crore. Revenue from operations rose 47% YoY to Rs 3,409.9 crore. In constant currency terms, revenue grew 43.8% YoY, while USD revenue growth stood at 43.6%.

Coforge also signed five large deals during the quarter with a total contract value (TCV) of $1.56 billion. Its executable order book for the next 12 months stood at $1.5 billion — up 47.7% YoY and 10.3% sequentially.

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On the technical front, Coforge’s Relative Strength Index (RSI) stands at 73.8, indicating overbought conditions — typically a signal that the stock may be due for a pullback. Meanwhile, the MACD is at 56.0, positioned above both its centerline and signal line, suggesting continued bullish momentum.

The stock is currently trading above all key moving averages — including its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs) — reinforcing the positive trend.

While Coforge is down 4% year-to-date, it has gained 23% over the past three months. The company’s current market capitalisation stands at Rs 62,047 crore.

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