Coforge share price rises 6% after JP Morgan upgrade on growth outlook

Coforge Shares Soar 6% After JP Morgan Upgrades Outlook, Bets on Growth and Margin Expansion

Shares of Coforge Ltd surged as much as 6% in intraday trade on Tuesday following a bullish report from JP Morgan, which sees further upside in the IT company driven by strong growth prospects and improving operating margins.

Coforge stock touched a high of ₹6,130 on the BSE, its highest level in over 10 months, after closing at ₹5,785 in the previous session. The rally comes after JP Morgan upgraded the stock, citing a robust demand environment, strong client relationships, and Coforge’s strategic focus on high-growth verticals like BFSI, travel, and healthcare.

JP Morgan’s Bullish Outlook

In its report, JP Morgan initiated coverage on Coforge with an “Overweight” rating and set a target price of ₹6,500, implying further upside of nearly 12% from current levels. The brokerage emphasized Coforge’s ability to deliver double-digit revenue growth and margin expansion driven by operating leverage and improving offshore mix.

“Coforge stands out in the mid-cap IT space with its deep domain capabilities and strong execution,” the brokerage said. “We expect FY26 and FY27 to see an uptick in deal wins and profitability.”

Margin Expansion in Focus

Coforge has already undertaken steps to enhance margins through automation, employee utilization improvements, and expansion of its offshore delivery model. Operating margin stood at 15.2% in Q4 FY25 and is expected to expand by 150–200 bps over the next 12–18 months, according to analyst estimates.

Technical Outlook

From a technical perspective, Coforge shares have broken out of a consolidation range and are now trading above key moving averages. The RSI (Relative Strength Index) is trending higher, indicating strong buying momentum.

Company Performance Snapshot

  • Q4 FY25 Revenue: ₹2,230 crore (up 13.4% YoY)
  • Net Profit: ₹226 crore (up 19.8% YoY)
  • EBITDA Margin: 17.4%
  • Client additions: 10 new clients in Q4 across verticals

Investor Confidence Returns

The recent upgrades and positive sentiment have lifted investor confidence in mid-cap IT companies, especially those with a clear growth trajectory. Coforge, with a market capitalization of ₹40,000 crore, has now gained over 18% in 2025 YTD.


Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult with financial experts before making investment decisions.

Also Read: L&T Finance Shares Rise 2.5%, Hit 52-Week High After Acquiring Paul Merchants’ Gold Loan Business

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top