Coforge - Q1 FY22 Result Report - YES Securities

(Rating: BUY, TP: Rs5,475, Upside: 15.4%)

- Reported 15% QoQ revenue growth in USD terms aided by the inorganic component as it completed the acquisition of SLK Global in the quarter. Organic growth was 7.6% QoQ in USD terms, well above the estimate.

- EBITDA margin include RSU cost was down 210 bps QoQ to 15.1% (slightly below estimate) led by wage hike, cost involved in ramping up large deals and other transitionary cost on account of SLK global acquisition.

- Deal booking was strong at $318 mn for the quarter (up 59% QoQ)

- Overall strong result with organic revenue growth above expectation and deal booking remains robust. The revenue growth outlook remains strong as it is well on track to deliver 19%+ organic revenue growth for FY22. It trades at PER of 36x on FY23 earnings, given its robust growth outlook. We maintain BUY on the stock with revised target price of Rs 5,475

Shares of Coforge LTD. was last trading in BSE at Rs. 5086.25 as compared to the previous close of Rs. 5177.35. The total number of shares traded during the day was 23608 in over 4182 trades.

The stock hit an intraday high of Rs. 5225 and intraday low of 5034.9. The net turnover during the day was Rs. 121004298.

Source : Equity Bulls

Keywords