Rs 19/Sh Dividend Declared: IT Stock Set To Go Ex-Dividend In 1-Week, 16 Analysts Give Buy Call

Mid cap IT Software sector company Coforge Ltd shares today surged 0.93% to 7123.15 per share on BSE. Coforge shares rallied 2.72% in last 1-week and gained 39% in last 1-year. The Board of Directors of Coforge today recommended an interim dividend of Rs 19 per share with face value of Rs 10/- each fully paid up for the financial year 2024-25. The company has already fixed October 11, 2024 as the record date for the payment of interim dividend. Check details below:

Coforge Ltd Recommends Second Interim Dividend: As per the exchange filing of Coforge Ltd declared today, "with reference to the captioned subject, this is to inform you that the Board of Directors of the Company, through circular resolution on October 04, 2024, has declared a second interim dividend of Rs. 19/- (Rupees Nineteen only) per Equity Share of the Company having face value of Rs. 10/- each fully paidup, for the financial year 2024-25."

Coforge Sets Record Date For Interim Dividend: The BSE filing added, "the Record date for the purpose of ascertaining the eligibility of shareholders for payment of the second interim Dividend, as already communicated, is October 11, 2024. The payment of interim dividend/ dispatch of dividend warrants/banker's cheque would be done within 30 days from the date of declaration of dividend."

It may be further noted that the Board has considered and declared the second interim dividend today as mentioned above which was earlier proposed to be considered at the ensuing Board meeting scheduled on October 22, 2024.

Coforge Ltd Shares Performance: The 52-week high price of Coforge Ltd shares on BSE is Rs 7245.00 per share (as on 03/10/2024) and 52-week low price is Rs 4291.05 per share (as on 09/05/2024), respectively. Coforge shares traded fresh 52-week high on October 3, 2024. Coforge shares rallied 21% in last 3-months and gained 104% in last 2-years. In last 5-years, Coforge stock rallied 416%.

Should You Buy Coforge Shares? The analyst has upgraded Coforge shares to buy with target price of Rs 8100/share as the IT sector is on the cusp of recovery. Motilal Oswal said, "believe Coforge can leverage synergies from Cigniti and healthy growth in Coforge's executable orderbook bodes well for its core business.

"Citi has assigned sell call to Coforge with target price of Rs 5885/share adding, "management reiterated their guidance and H1FY25 margin will likely see 50 bps improvement vs H1FY24."

Meanwhile, a total of 19 analysts tracking the stock, 6 analysts gave strong buy call, 10 analysts recommended buy rating, and 3 analysts assigned sell call.

Coforge Q1 Results: It announce that its profit for first quarter ended June 30, 2024 declined 19.4% YoY as a result of a one-time hit with a stake acquisition of Cigniti Technologies announced in May. Sequentially, profit slipped 40.5% to Rs 133.2 crore in April to June period 2024 as against Rs 223.7 crore announced un the previous quarter. Its profit was announced at Rs 165.3 crore a year ago. Without the acquisition impact, the "normalised profit" reportedly jumped 38.2% YoY at Rs 228.5 crore.

Coforge declared that its revenue soared 8.1% YoY and 1.8% quarter-on-quarter (QoQ) to Rs 2,400.8 crore for the first quarter ended June as against Rs 2,221 crore in Q1FY24 and Rs 2,358.5 crore in the March quarter or Q4FY24. In dollar terms, Coforge announced the surge in revenue at 7.8% YoY and 1.6% QoQ in constant currency term at $291.4 million. Margins suffered as a result of acquisition of Cigniti-related expenses at Rs 79.5 crore. The EBIDTA margins slipped to 17.9% from 19.0% in previous quarter and up from 16% a year ago.

Coforge Shareholding: Number of FII/FPI investors increased from 456 to 483 in June 2024 quarter. Mutual Funds have decreased holdings from 41.68% to 34.96% in June 2024 quarter. Number of MF schemes decreased from 42 to 38 in June 2024 quarter.

Coforge About: Coforge is a global digital services and solutions provider, that leverages emerging technologies and deep domain expertise to deliver real-world business impact for its clients. A focus on very select industries, a detailed understanding of the underlying processes of those industries and partnerships with leading platforms provides us a distinct perspective. Coforge leads with its product engineering approach and leverages Cloud, Data, Integration and Automation technologies to transform client businesses into intelligent, high growth enterprises.

Disclaimer: The stock has been picked from the brokerage report of Citi and Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.