Motilal Oswal-Backed Multibagger IT-Stock with USD 1,365 Million Order Book; Board Likely to Announce Stock Split
The company has a market cap of over Rs 50,000 crore and the stock gave multibagger returns of over 1,800 per cent in a decade.
Indian stock market is closed Today, February 26, 2025, on account of Mahashivratri. On February 25, 2025, the stock market ended on a mixed note, with the Sensex up by 0.20 per cent and the Nifty-50 down by 0.03 per cent. Shares of Motilal Oswal-backed IT company closed in green, up by 0.34 per cent to Rs 7,661.10 per share, with an intraday high of Rs 7,706.05 per share and an intraday low of Rs 7,516.85 per share.
The stock is likely to be in focus on February 27, 2025, because a meeting of the Board of Directors of the information technology (IT) company is scheduled to be held on Tuesday, March 04, 2025, inter-alia to consider the proposal of alteration in the share capital of the company by sub-division/ stock split of the existing equity shares of the face value Rs 10 each, fully paid-up, in such a manner as may be determined by the Board of Directors subject to approval of the shareholders of the Company and any approvals, as may be required under applicable law.
Motilal Oswal's Motilal Oswal Midcap Fund holds a significant 8.06 per cent equity stake in the company as of December 2024, according to the BSE exchange.
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The buzzing sock that is backed by Motilal Oswal is COFORGE LTD.
Coforge, a leading IT services company and a top 20 Indian software exporter provides end-to-end software solutions and services to prominent global customers like British Airways, the ING group, and SEI Investments. With subsidiaries across the US, Singapore, Australia, UK, Germany, and Thailand, Coforge focuses on marketing and project mobilization. The company also maintains strategic business partnerships with major IT players worldwide, extending its reach and capabilities. This global presence and collaborative approach contribute to Coforge's strong market position.
Coforge demonstrated robust performance in Q3 FY2025, achieving 8.4 per cent sequential and 40.3 per cent year-over-year constant currency (CC) growth. The company secured four large deals, boosting its 12-month signed order book to USD 1,365 million, a 40.1 per cent increase year-over-year. Q3 revenue reached USD 397.1 million, reflecting a 40.3 per cent CC growth. This balanced growth was evident across verticals, with Travel leading at 43.4 per cent year-over-year growth, followed by Government outside India at 48 per cent. Emerging verticals also saw impressive growth of 88.2 per cent year-over-year.
The company's financial performance was equally strong, with adjusted EBITDA reaching USD 70.5 million, up 15.4 per cent sequentially and 39.3 per cent year-over-year. The adjusted EBITDA margin improved to 17.8 per cent, a 122-basis point increase sequentially. Coforge achieved an order intake of USD 501 million in Q3, maintaining over half a billion for the second consecutive quarter. The company's total headcount reached 33,094, with a net addition of 611 employees. Coforge continues to invest in AI and GenAI capabilities, upskilling its workforce and expanding its portfolio in this domain.
The company has a market cap of over Rs 50,000 crore and the stock gave multibagger returns of over 1,800 per cent in a decade. Investors should keep an eye on this mid-cap IT stock.
Disclaimer: The article is for informational purposes only and not investment advice.