LIC-Backed Large-Cap IT Services Company Releases Groundbreaking GenAI Report With HFS Research - Check Details Inside!
The stock has given one-year return of 37.2 per cent and a five-year return of 652 per cent.
Coforge Ltd, a global digital services and solutions provider, has partnered with HFS Research to release a pivotal report titled 'Break Free from GenAI Pilot Purgatory'. This report explores the challenges enterprises face in scaling Generative AI (GenAI) from pilot phases to full deployment. It emphasises the need for organisations to align AI initiatives with strategic business goals, invest in infrastructure and data readiness, and cultivate a culture of AI adoption.
The report identifies seven critical barriers to effective AI scaling, such as the Demo Delusion and Infrastructure Reality Gap, which contribute to wasted investments and widen the gap between AI leaders and laggards. Coforge's Executive Vice President, Vikrant Karnik, advocates a structured four-stage approach for successful AI adoption, including opportunity identification and sustaining value through continuous improvement. This collaboration highlights Coforge's commitment to driving AI innovation and assisting enterprises in avoiding the common pitfalls of AI implementation, ensuring they remain competitive in a rapidly evolving technological landscape.
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As of 21 March 2025, Coforge's stock is traded at Rs 7,747. The stock's 52-week high is Rs 9,834.75, and its 52-week low is Rs 4,301.75. Coforge's market capitalisation stands at Rs 51,810 crores, with a one-year return of 37.2 per cent and a five-year return of 652 per cent, making it a multibagger stock.
Coforge Limited is a prominent IT services company specialising in end-to-end software solutions and digital transformation services. With a strong presence in over 23 countries and 30 global delivery centres, Coforge has established itself as a trusted partner for major global clients like British Airways and the ING Group. The company focuses on leveraging emerging technologies such as AI, cloud computing, and data analytics to drive business impact. Coforge's strategic partnerships with leading technology platforms, including Microsoft and AWS, enable it to offer comprehensive solutions in product engineering, digital process automation, and low-code platforms. The company's recent acquisition of a 54 per cent stake in Cigniti Technologies is a strategic move to expand its footprint in North America and create new verticals in retail, technology, and healthcare. With a robust order book of approximately $1,900 million, Coforge is well-positioned to continue its growth trajectory and deliver value to its clients.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 3,318 crore, reflecting a YoY growth of 42.82 per cent compared to Rs 2,323 crore in December 2023. The operating profit stood at Rs 443 crore, marking a 12.12 per cent increase from Rs 395 crore in the same quarter last year. However, the profit after tax (PAT) declined by 9.45 per cent to Rs 216 crore from Rs 238 crore in December 2023.
In FY24, the company posted a revenue of Rs 9,179 crore, registering a 14.53 per cent growth compared to Rs 8,015 crore in FY23. The net profit for the year stood at Rs 808 crore, up 16.46 per cent from Rs 694 crore in the previous financial year.
As of December 2024, the shareholding pattern is as follows: Foreign Institutional Investors (FIIs) hold 42.55 per cent, Domestic Institutional Investors (DIIs) hold 47.86 per cent, and the public holds 9.58 per cent. There is no promoter holding. Compared to the previous quarter, FIIs have slightly increased their stake from 42.09 per cent to 42.55 per cent, while DIIs have slightly reduced their holding from 48.15 per cent to 47.86 per cent. Public shareholding has marginally declined from 9.75 per cent to 9.58 per cent. The changes in shareholding are minor.
With a PE ratio of 67.6, the company trades at a premium compared to the industry PE of 30. The company has ROCE of 28.6 per cent and ROE of 24.1 per cent. The company has been maintaining a healthy dividend payout of 54.51 per cent.
Investors must keep this Large-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.