Citi, Nomura cut targets on Coforge post-Q2 results; shares decline
The brokerages cut their targets after Coforge on Thursday (pre-market) posted a 10 per cent year-on-year (YoY) decline in consolidated net profit for the September quarter at Rs 181 crore, partly on account of a one-time increase in ESOP costs.
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Coforge shares declined in Friday's trading session by nearly 2 per cent, touching the day's low of Rs 5,015 apiece. The selling pressure was witnessed after global brokerages Nomura and Citi slashed their target price on the stock.
The brokerages cut their targets after Coforge on Thursday (pre-market) posted a 10 per cent year-on-year (YoY) decline in consolidated net profit for the September quarter at Rs 181 crore, partly on account of a one-time increase in ESOP costs.
Consolidated profit after tax (PAT) for the second quarter of the current fiscal was Rs 181 crore, 10 per cent lower than the year-ago period. Also, the PAT grew 9.5 per cent sequentially from Rs 165 crore in the June quarter but was still below Zee Business Research's estimate of Rs 240 crore.
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The revenue from operations came in at Rs 2,276.2 crore in the quarter under review, rising over 16 per cent from Rs 1,959.4 crore logged in the corresponding period of the previous fiscal.
At around 11:00 a.m., shares of Coforge were down 1.8 per cent at Rs 5,013.95 apiece. The market capitalisation of the company stood at Rs 30,859.95 crore.
Citi maintained 'a'sell' call on the Coforge and slashed the target price to Rs 4,215 apiece from Rs 4,360 apiece.
Meanwhile, Nomura maintained its 'buy' stance but cut the target price to Rs 6,310 from Rs 6,480 apiece.
What other brokerages recommend on Coforge:
The IT solutions company reaffirmed its 2023–24 revenue growth guidance of 13–16 per cent.
Coforge share price: Past performance
In 2023, Coforge shares gained over 26 per cent against the Nifty50's rise of over 7 per cent.
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