Rs 19/Sh Dividend In Q1: IT Stock To Mull Dividend Again On Oct 22, Motilal Upgrades To Buy

Mid cap IT software company Coforge Ltd informed today about its upcoming meeting of Board of Directors scheduled to take place on October 22, 2024 to consider financial results and dividend. Current market price of Coforge Ltd shares on BSE is Rs 6992.80 per share. Coforge shares surged over 7% in last 1-week and zoomed 113% in last 2-years. The company on July 22, 2024 recommended an interim dividend of Rs 19/- per equity share and fixed August 2, 2024 as record date.

Coforge has a market capitalisation of Rs 46,637.63 crore. Life Insurance Corporation Of India has 5.88% stake in Coforge with 3,918,710 shares of the company. Check key details below:

Coforge To Consider Dividend Again: As per the BSE filing of Coforge issued as on September 16, 2024, "the meeting of Board of Directors of the Company is scheduled to be held on Tuesday, October 22, 2024, inter alia, to consider and approve the un-audited consolidated and standalone financial results of the Company for the quarter and half year ended September 30, 2024. The Board of Directors will also be considering the proposal of the payment of Interim Dividend, if any, for the Financial Year 2024-25 and will determine the Record date for the purpose of the Interim Dividend, if approved."

Coforge Shares Performance: The 52-week high price of Coforge stock on BSE is Rs 7086.20 per share (as on 16/09/2024) and 52-week low price is Rs 4291.05 per share (as on 09/05/2024), respectively. Coforge shares gained 35% in last 3-months, zoomed 25% in last 1-year, and offered return of 406% in last 5-years. In last 10-years, Coforge shares gained 1748%.

Motilal Oswal Assigns Buy: 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.

Coforge Q1 Results: It declared the 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.

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.

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