Coforge Ltd (COFORGE) - Upside Price Targets (INR)
| Target Level | Price (INR) | Potential Gain |
|---|---|---|
| Target 1 | 1,650.00 | +6.55% |
| Target 2 | 1,725.00 | +11.39% |
| Target 3 | 1,815.00 | +17.20% |
| Target 4 | 1,880.00 | +21.40% |
| Target 5 | 1,950.00 | +25.92% |
Coforge Ltd (COFORGE) - Downside Price Targets (INR)
| Target Level | Price (INR) | Potential Decline |
|---|---|---|
| Target 1 | 1,475.00 | -4.75% |
| Target 2 | 1,410.00 | -8.95% |
| Target 3 | 1,350.00 | -12.82% |
| Target 4 | 1,290.00 | -16.70% |
| Target 5 | 1,225.00 | -20.89% |
Coforge Ltd - Strong Support Levels (INR)
| Support Level | Price (INR) | Strength |
|---|---|---|
| S1 | 1,520.00 | Recent Low |
| S2 | 1,460.00 | Medium |
| S3 | 1,380.00 | Strong |
| S4 | 1,300.00 | Very Strong |
| S5 (52-Wk Low) | 1,194.01 | Major |
Coforge Ltd - Strong Resistance Levels (INR)
| Resistance Level | Price (INR) | Strength |
|---|---|---|
| R1 | 1,570.00 | Immediate |
| R2 | 1,620.00 | Medium |
| R3 | 1,700.00 | Strong |
| R4 | 1,800.00 | Very Strong |
| R5 (52-Wk High) | 1,994.00 | Major |
Coforge Ltd - 2026 Price Outlook (INR)
| Timeframe | Upside Target | Downside Target | Key Driver |
|---|---|---|---|
| Short Term (H1 2026) | 1,720 - 1,780 | 1,430 - 1,480 | Quarterly Earnings, Market Sentiment |
| Long Term (End of 2026) | 1,900 - 2,050 | 1,250 - 1,350 | Revenue Growth, Margin Expansion, Macro Factors |
Frequently Asked Questions (FAQs) - Coforge Ltd Analysis
Q: What is the basis for these price targets for Coforge?
A: The targets are calculated using a combination of technical analysis (like support/resistance from the 52-week range), fundamental analysis (P/E, revenue growth, margins), and projected valuation multiples based on the company's financial trajectory.
Q: Why is the net profit margin declining despite revenue growth?
A: As per the data, while revenue grew ~34%, operating expenses surged ~45%. This higher cost growth, potentially from investments in growth, integration, or wage inflation, has temporarily pressured the net profit margin.
Q: Is the current P/E ratio of 43.55 justified?
A: A P/E of 43.55 is significantly higher than the industry average, pricing in high future growth expectations. Its sustainability depends on Coforge's ability to meet its aggressive revenue targets and improve profit margins in the coming quarters.
Q: What are the biggest risks to the downside targets?
A: Key risks include failure to curb operating expense growth, a slowdown in IT sector spending, competitive pressures, and broader market downturns. The major support lies around the 52-week low of ₹1,194.01.
Q: What could drive the stock toward its 52-week high again?
A: Consistent quarterly earnings beats, improvement in net profit margin, announcement of large deal wins, and a positive revision in IT sector outlook could be catalysts for a re-rating towards previous highs.
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