LIC-Backed Large-Cap Global IT Services Provider Partners with Tech Giant to Revolutionise Developer Productivity; Trained Over 10,000 Developers on GitHub Copilot

With a PE ratio of 70.2, the company trades at a premium compared to the industry PE of 30.5. The company has ROCE of 28.6 per cent and ROE of 24.1 per cent.

Coforge Limited, a prominent global digital services and solutions provider, has announced an enhanced collaboration with Microsoft aimed at boosting developer productivity. This strategic partnership focuses on integrating AI-driven solutions into Coforge's engineering services, particularly in legacy application modernization and new code development. As part of this initiative, Coforge has trained over 10,000 developers on GitHub Copilot, leveraging AI tools to modernize legacy applications and enhance productivity across various development ecosystems.

The company has also achieved the Accelerate Developer Productivity with Microsoft Azure specialization, which underscores its commitment to delivering high standards of service and support. This specialisation, previously known as DevOps with GitHub Advanced Specialization, highlights Coforge's expertise in utilizing Microsoft's AI-integrated toolchain to optimize developer productivity. Vic Gupta, EVP and Head of the Microsoft business at Coforge, emphasized the company's dedication to adopting AI-enabled tools to streamline workflows and deliver intelligent applications faster. The collaboration is expected to lead to significant productivity gains, with reports of over 30% improvements in fresh code development for certain client projects.

Coforge Limited is a leading IT services company, recognized among the top-20 Indian software exporters. The company specializes in providing comprehensive software solutions and services, with a strong focus on digital transformation and technology services. Coforge's business model includes consulting, implementation, and support services in areas such as cloud computing, cybersecurity, analytics, and enterprise applications. The company operates across 21 countries with 26 delivery centers, serving a diverse clientele that includes major global brands like British Airways and the ING group. Coforge's revenue is geographically diversified, with significant contributions from the US, EMEA & Africa, Asia Pacific, and India. The company has a robust order book valued at approximately US$ 1,900 million as of FY24. Coforge's strategic partnerships with leading technology providers such as Microsoft, AWS, and Google further strengthen its market position. Recent initiatives include the acquisition of a 54% stake in Cigniti Technologies, aimed at expanding its presence in North America and creating new verticals in retail, technology, and healthcare.

As of March 27, 2025, Coforge Limited's stock is priced at Rs 8030. The stock's 52-week high is Rs 9834.75, and its 52-week low is Rs 4301.75. Coforge's market capitalisation stands at Rs 53,777 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 70.2, the company trades at a premium compared to the industry PE of 30.5. 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.