Rs 19/Sh Dividend: IT Stock Sets Aug 2 As Record Date, Morgan Stanley Upgrades TP To Rs 7180

Mid cap IT software company Coforge Ltd on July 22, 2024 declared August 2, 2024 as the record date for interim dividend of Rs 19/- per equity share of the company with face value of Rs 10/- each for the financial year 2024-25. Current market price of Coforge Ltd share on BSE is Rs 6383.85 per share with gain of 0.97%. Coforge shares offered return of 20% in last 1-month and gained 402% in last 5-years. The company has a market capitalisation of Rs 42,576.31 crore. Meanwhile, leading brokerage firm Morgan Stanley has issued overweight call on Coforge Ltd share and sought to upgrade the target price to Rs 7,180 per share. More details below:

Coforge Ltd Recommended Dividend, Fixed Record Date: As per the regulatory filing of Coforge Ltd issued as on July 22, "The Board has also declared 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, the Board has fixed August 02, 2024, as the "Record Date" for the purpose of ascertaining the eligibility of shareholders for payment of interim Dividend."

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.

Coforge Q1 Results: The IT software company declared 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.

Meanwhile, Coforge announced 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.

Morgan Stanley Issues Overweight Call: According to the brokerage firm, an overweight call has been issued for Coforge and target price was upgraded to Rs 7,180 per share. The analyst said, Q1 results show signs of revenue growth pickup with an orderbook upturn. Company has strong headcount addition. The brokerage firm raised the F25-F27 EPS Estimate By 5%.

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. Life Insurance Corporation Of India has 5.88% stake in Coforge with 3,918,710 shares of the company.

Coforge Shares Performance & Return: The 52-week high price of Coforge stock on BSE is Rs 6840.00 per share (as on 19/02/2024) and 52-week low price is Rs 4291.05 per share (as on 09/05/2024), respectively. The company has a market capitalisation of Rs 42,429.25 crore. Coforge shares gained 35% in last 1-year, rose 72% in last 2-years, and offered return of 35% in last 3-years.

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.

Disclaimer: The stock has been picked from the brokerage report of Morgan Stanley. 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.