Target: ₹1,900

CMP: ₹1,479.25

We attended Coforge’s Analyst Day, where discussions were centered on the company’s medium-term growth aspirations, margin outlook following the Encora acquisition, evolving commercial models and the role of AI across its key verticals. The management outlined its ambition to scale up revenue from about $2.5 billion currently to about $5 billion by FY30, implying a revenue CAGR of about 19 per cent (about 15 per cent organic), supported by deeper penetration within existing verticals, increasing wallet share in large accounts, sustained large-deal momentum and selective acquisitions. The company also indicated that its margin profile has structurally improved, with portfolio rationalisation, acquisition integration and productivity initiatives supporting margins at levels above historical averages.

We came away with the view that Coforge is attempting to evolve beyond a purely volume-led growth model. The management increasingly emphasised domain-led transformation programmes, outcome-oriented commercial structures and larger, proactive engagements across key verticals such as Banking (29 per cent of revenue) and Travel (25 per cent of revenue). While the medium-term ambition appears achievable given the company’s execution track record, sustained delivery will depend on successful large-deal conversion, integration of acquisitions and continued monetisation of AI-led opportunities. We value Coforge at 26x FY28E EPS with a TP of ₹1,900, implying a 30 per cent potential upside. Reiterate BUY.

Published on June 18, 2026