- Coforge‘s net income for the fourth quarter was 2.61 billion rupees, which is an increase of 17% compared to the previous year, but below the estimated 2.82 billion rupees.
- The company’s revenue reached 34.1 billion rupees, marking a 47% increase year-over-year, yet it fell short of the projected 35.27 billion rupees.
- Total costs for Coforge rose by 50% from the previous year to 30.5 billion rupees.
- Other income surged significantly to 314 million rupees, compared to just 40 million rupees the previous year.
- The company declared a dividend per share of 19 rupees.
- Analyst recommendations for Coforge include 26 buys, 4 holds, and 8 sells.
Coforge on Smartkarma
Independent analyst Nimish Maheshwari recently published a report on Coforge on Smartkarma, questioning whether Coforge‘s $1.56 billion deal with Sabre will be a game-changer or a risky move. The deal aims to bolster Coforge‘s presence in travel technology, but concerns over Sabre’s financial stability may impact long-term success. Despite this, Coforge‘s strategic acquisitions of Rythmos and TMLabs align with its goal to enhance cloud, data, and enterprise IT capabilities, strengthening its position in airline and ServiceNow implementation services.
Analysts acknowledge Coforge‘s strong revenue visibility, but uncertainties loom due to Sabre’s substantial debt of $5.1 billion and negative net worth, which raise cash flow concerns. This mixed outlook highlights the division among analysts regarding Coforge‘s future profitability and risk exposure in the evolving market landscape.
A look at Coforge Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Coforge Limited, a provider of information technology services in India, has been assessed using Smartkarma Smart Scores to gauge its long-term outlook. The company scored moderately across various factors, with a score of 4 in Dividend and Resilience, indicating a strong performance in these areas. While scoring 3 in both Growth and Momentum suggests steady progress and market momentum, the Value score of 2 reflects a moderate valuation compared to its peers.
Overall, Coforge shows promising signs of resilience and dividend stability, positioning it well for the future despite having room for improvement in terms of value. Investors may find Coforge a potential prospect moving forward, based on its consistent dividend yield and perceived ability to weather market challenges, tempered with opportunities for growth and momentum in the IT services sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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