Coforge share price jumps over 6% after Q4 results, dividend, stock split record date. Should you buy?

Coforge share price jumped over 6% on Tuesday after the company released its Q4 results and announced dividend and stock split proposal. Coforge share price rallied as much as 6.66% to ₹7,999.00 apiece on the BSE.

IT solutions company Coforge reported a 17% year-on-year (YoY) growth in its consolidated net profit to ₹261 crore for the fourth quarter of FY25, as against ₹223.7 crore in the corresponding quarter last year.

The company’s revenue from operations in Q4FY25 increased 47% to ₹3,409.9 crore from ₹2,318.4 crore, YoY. In constant currency (CC) terms, the revenue growth was 43.8% YoY while in USD terms it grew 43.6%.

The company said it witnessed record large deal closure in Q4, with five large deals. The total contract value (TCV) signed during the quarter was $1.56 billion. The executable order book over the next twelve months is $1.5 billion, a 47.7% YoY and a 10.3% QoQ increase.

Coforge board also declared a fourth interim dividend of ₹19 per equity share of the company for FY25. Coforge dividend record date for ascertaining the eligibility of shareholders for the payment of dividend has been fixed as May 12.

Moreover, Coforge also announced the record date for its 1:2 stock split. This means that existing one equity share of the company having a face value of ₹10 each will be divided into two equity shares of ₹5 each, fully paid up.

Coforge stock split record date has been fixed as on June 4.

Should you buy Coforge shares after Q4 results?

Coforge posted yet another solid set of numbers, and also reported a super-strong TCV, up 174% YoY— with a 12-month executable order book up 48% YoY, analysts said.

“This lays the foundation of a very strong FY26 and reaffirms its growth leadership in the sector. We are tweaking FY26E and FY27E EPS by -2.6% and -2.5% (on divestment impact and lower other income). We continue to value Coforge at 35x FY27E PE,” Nuvama Institutional Equities said.

The brokerage firm maintains Coforge as its top pick in the sector, reiterating its belief in the company’s ability to build a strong business franchise over the next few years.

Nuvama Equities maintained a ‘Buy’ rating on Coforge shares, but cut the target price to ₹9,400 apiece, from ₹9,600 earlier.

Antique Stock Broking said that Coforge reported strong organic revenue growth with strong growth outlook commentary for the coming quarters.

“Post the strong 4Q results and outlook we increase our FY26 and FY27 EPS forecast by 4% and 3% while we reduce our target P/E multiple to 36x (from 37x) on heightened risk to industry demand outlook. Our valuation multiple for Coforge is at 10% discount to Persistent,” said the brokerage house.

It maintained a ‘Buy’ rating with an unchanged Coforge share price target of ₹9,650 apiece.

Coforge Share Price Performance

Coforge share price has surged 15% over the past month; however, the IT stock remains down 20% on a year-to-date (YTD) basis. Despite this, Coforge share price has delivered a strong performance over the longer term, gaining 73% in the past year and 95% over three years. Over a five-year period, Coforge shares have generated multibagger returns of 437%.

At 10:10 AM, Coforge share price was trading 1.90% higher at ₹7,641.55 apiece on the BSE. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.