COFORGE
Coforge Ltd. · Technology · IT Services & Consulting · Mid Cap
STRONG BUY with net score +13 (+13 buy, −0 sell). Strongest positive: VR Stock Rating Strong (weight 4). 6 BUY rules fire total. P/E is 13% below its 5Y median — historically cheap. P/B is 71% below its 5Y median — verify median isn't skewed by past spikes.
Engine Verdict
Price Context
Price History (Yahoo) with Your Decisions
Returns Profile
VR Score Radar (out of 10)
Verdict Breakdown · 6 triggered / 21 active
VR Proprietary Scores
Fundamentals
Engine Zone Timeline · 2 runs
Your Decisions on COFORGE · 0
Position Lifecycle · COFORGE
Recent News · COFORGE
Sector Peers
| Stock | Zone | Price | Mcap | P/E | P/B | ROE % | ROCE % | D/E | EPS g% | Div Y% | 1Y Ret % | Quality |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| COFORGEYOU Coforge Ltd. | Strong Buy | 1,492.90 | ₹665B | 42.71 | 2.50 | — | — | — | — | 0.80 | -19.82 | 9/10 |
| AURIONPROSOLUTIONS Aurionpro Solutions Ltd. | Buy | 895.10 | ₹49B | 23.53 | 2.83 | — | — | — | — | 0.45 | -30.05 | 7/10 |
AI Deep Dive (Claude)
Coforge Ltd. – Stock Analysis
Bull Case
Coforge screens exceptionally well on quality and valuation. The P/E of 42.7 is 12.8% below its 5-year median of 49.0, while the P/B of 2.50 sits 71% below its 5-year median of 8.67—an unusual discount suggesting either aggressive accounting changes or genuine undervaluation. The FCF yield of 6.87% is robust for an IT services firm, with free cash flow per share (₹102.5) comfortably exceeding EPS (₹49.4), indicating high-quality earnings. The stock trades 25.6% below its all-time high of ₹2,005, offering a healthy entry after correction. The VR Quality Score of 9.0/10 reinforces strong fundamentals. For a mid-cap with these metrics and a PEG of 1.40, the risk-reward appears favourable.
Bear Case
Critical profitability metrics are missing—ROE, ROCE, and Debt/Equity are all "n/a", making it impossible to assess capital efficiency or leverage risk. This is a red flag for due diligence. The Momentum Score of 2.0/10 signals weak near-term price action, corroborated by 1-year returns of -19.8%, suggesting sector or company-specific headwinds. Growth visibility is limited: the Growth Score of 6.0/10 and PEG of 1.40 indicate mid-single-digit expansion, unexciting for IT services. The sharp 71% drop in P/B versus its median warrants investigation—either past valuations were irrational or fundamental earning power has deteriorated. Without ROE/ROCE data, you're flying blind on capital allocation quality.
What Would Flip the Verdict
If ROE/ROCE data emerges below 15%, exit immediately—it would confirm the P/B collapse reflects permanent capital impairment, not temporary mispricing. If FCF yield drops below 4% for two consecutive quarters, it signals deteriorating cash conversion or aggressive capex; trim positions. If revenue growth decelerates below 8% YoY (monitor next quarterly results), the PEG of 1.40 becomes unattractive and the Growth Score of 6.0 unsustainable. Conversely, if the stock approaches ₹1,700 (P/E ~48, near 5Y median), consider partial profit-booking. Demand transparency on missing metrics in the next annual report—persistent "n/a" data is unacceptable for serious analysis.
Generated 6/26/2026, 5:10:19 PM · Cached. Click Regenerate to refresh (counts against today's quota).