IT Stock With Attractive Dividend: Rs. 19 Payout, January 30 Record Date; Worth Buying Now?

Coforge is a multinational supplier of digital services and solutions. Under the symbol COFORGE, the company's shares are traded on the Bombay Stock Exchange and the National Stock Exchange of India. Following the release of the company's Q3 results and third interim dividend for FY25, Coforge's shares closed Thursday's trading session on the BSE 11.86% higher at Rs 9200.80 per share, with a market capitalisation of Rs 61,515.98 Cr.

Coforge Dividend

"The Board has also declared third interim dividend of Rs. 19/- (Rupees Nineteen only) per Equity Share of the Company having face value of Rs. 10/- each fully paid-up, for the financial year 2024-25. Further in terms of Regulation 42 of the SEBI Listing Regulations, as amended, the Board has fixed January 30, 2025 as the "Record Date" for the purpose of ascertaining the eligibility of shareholders for payment of third interim dividend. The payment of interim dividend would be done within 30 days from the date of declaration of dividend," said Coforge in a stock exchange filing.

Coforge Financials

Coforge's net profit for the December quarter increased by 10% to Rs 268 crore, while its revenue increased by 40.3% year over year and 8.4% quarter over quarter in CC terms. The company's EBITDA increased 7.2% QoQ and 29.3% YoY. Operating cash flow for the firm was $47.0 million, up 211% on a quarterly basis. The firm had 33,094 employees, with a sequential net addition of 611. Since the year began, the headcount has grown by 16% on its own.

"A 8.4% sequential cc growth, a 40.3% cc YoY growth in a seasonally weak quarter, four large deals in that same quarter, a concurrent and material sequential expansion of 122 bps in margins, a Cigniti business that has already touched an EBITDA margin of 17.3%, a large deals pipeline that is looking very robust and finally an ever strengthening next twelve month signed order book which now is 40% higher YoY gives us confidence that the coming year shall once again see robust and sustained growth." said Sudhir Singh, Chief Executive Officer and Executive Director, Coforge Ltd.

Coforge Share Price Target

Hardik Matalia - Derivative Analyst at Choice Broking said, "Coforge Limited witnessed a sharp bullish move today, surging 11.77% and gaining 968 points intraday, forming a strong bullish engulfing pattern on the daily chart. This breakout, accompanied by significant volume, signals a potential continuation of the uptrend. With immediate support near Rs 8,700, any pullback to this level could be a buying opportunity, with a stop-loss at Rs 8,200. The stock is eyeing potential targets of Rs 9,500 and Rs 10,000 in the near term, backed by the positive technical structure."

"From a technical standpoint, Coforge is now trading above key moving averages, including the 20-EMA, 50-EMA, 100-EMA, and 200-EMA, which further confirms the bullish sentiment. The RSI is indicating upward momentum, while the recent surge in volume underscores strong buying interest. On the fundamental side, Coforge strong performance and positive outlook in the IT services sector add weight to the bullish case. The broader IT sector's outperformance is expected to provide additional tailwinds for Coforge growth trajectory. With robust technical and fundamental indicators, Coforge presents a solid opportunity for both short-term traders and long-term investors looking to capitalize on the ongoing strength in the IT Sector," Hardik Matalia further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns. in advises users to consult with certified experts before making any investment decision.