COFORGE

Coforge is a compelling player in high-end IT services, focusing on cutting-edge areas like engineering, digital transformation, AI, and cloud, steering clear of commodity work. Motilal Oswal has a strong Buy rating with an impressive 49-51% upside to ₹2,500 from its current ₹1,656. The recent acquisition of US-based Encora, a $500 million revenue engineering and AI firm, is a significant growth catalyst, expected to boost Coforge's FY26 revenue by 26%. The company's own financials show robust growth, with revenue tripling and net profit almost tripling since FY20. While its current P/E of 48.7 is higher than the industry average, it reflects a premium for this growth trajectory. Interestingly, FIIs have reduced their stake, but this has been more than absorbed by DIIs, showing domestic institutional confidence. However, a significant point of concern is the stock trading below its 200-day moving average, signaling a technical downtrend. While historically the 200-DMA hasn't been a consistent support or resistance, its current position below it suggests potential further downside unless a clear reversal above this key level occurs. This technical weakness tempers the otherwise strong fundamental story.