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Coforge

COFORGE · Nifty 50

1,465.7

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionit sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score95/100 (STRONG). 1 positive flags, 5 concerns.
Historical Context65 similar technical setups. Average outcome: -12.2% decline. 0% positive.

Fundamental

95/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Coforge scores 95/100 on fundamentals (strong). Coforge: BROAD EXPANSION regime.

Fundamental Score: 95/100 · STRONG · 0 signals detected

DuPont Analysis

ROE 15.1% broken into three drivers. Each shows how efficiently the company generates returns.

ROE15.1%=
9.2%Net Margin
×
1.1xTurnover
×
1.6xLeverage

ROE of 15.11% is moderate efficiency-driven and stable. Net margin of 9.2% × asset turnover of 1.06x × leverage of 1.6x.

What This Means

Net margin of 9.2% means the company keeps ₹9.2 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 1.06x means the company efficiently uses its assets to generate revenue. Leverage of 1.6x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

39.3%

Operating

12.3%

Net

9.2%

improving

Gross margin 39.3% → operating margin 12.3% → net margin 9.2%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

ADEQUATE

Cash flow covers net income 1.2x — earnings are ADEQUATE quality. Cash conversion is reasonable.

Debt Sustainability

COMFORTABLE

Interest covered 11.6x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.3x is low — balance sheet has capacity.

Free Cash Flow

STRONG

FCF margin at 6.7% — moderate. Generating cash after investments.

Peer Comparison

Coforge is compared against 10 peers in the it sector.

Key Watchpoints

🟢

Breaks above ₹1539 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1392 (-5%)

Further downside risk

🟢

It sector entering leadership

Sector rotation signal

Risk Flags

⚠️ 5 Warning1 Positive6 total flags
⚠️Unusual items are 16% of net income
Earnings Quality

One-off gains contributing to profit. Check sustainability of earnings without these items.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹226K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Goodwill is 28% of total assets
Balance Sheet

Significant goodwill from acquisitions. Monitor for impairment risk.

⚠️Cash covers 30% of current liabilities
Balance Sheet

Tight liquidity. Monitor cash position and access to credit lines.

⚠️Working capital changes are 37% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

Receivables decreasing — 9.9% of revenue
Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

⚠️ 5 warning flags — monitor closely.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
31.2UNAVAILABLE
P/B Ratio
4.8HIGH
Market Cap
₹6052205.0L CrHIGH
From 52W High
74% of high
Sector Peers
10
Coforge Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight