COFORGE

e shares under pressure: Market expert Avinash Gorakshakar weighs opportunity vs risk - Should you sell or hold?

Sebi-registered market analyst Avinash Gorakshakar shared his insights on Coforge, evaluating whether the recent decline in the company’s share price presents a potential opportunity for investors or signals further risks. Talking about Coforge's acquisition of Encora, Gorakshakar said, "The market is closely watching this acquisition." He said that the acquisition should ideally be funded through internal accruals and cash flows. "Whenever an IT company borrows or raises equity, the first concern is equity dilution," he said. "The recent selling pressure in the market reflects fears that dilution could be excessive and that near-term earnings growth may be impacted. However, it is important to hear the management’s perspective. This acquisition could be earnings-accretive and how quickly it contributes to revenue and profits will be crucial," he added.