Stocks To Buy: Motilal Oswal projects 29% upside in this Midcap IT stock
Published on 28/08/2025 05:01 PM
Stocks To Buy: Motilal Oswal projects 29% upside in this Midcap IT stockBrokerage firm Motilal Oswal believes Coforge's strong executable order book and resilient client spending across verticals bode well for its organic business.By Meghna Sen August 28, 2025, 5:01:33 PM IST (Published)1 Min ReadBrokerage firm Motilal Oswal Financial Services Ltd. (MOFSL) has reiterated its 'Buy' rating on Coforge, with a price target of ₹2,240 on the stock, which implies a potential upside of 29%.
The brokerage believes Coforge's strong executable order book and resilient client spending across verticals bode well for its organic business.
Coforge also continues to scale up large deals as a core growth lever. Management has set a target of signing at least 20 deals above $20 million in FY26 (five closed so far), with proactive proposals enjoying a 40-45% win rate.
The company's FY26 EBIT margin guidance stands at 14% (reported), which management believes is adequate to fuel growth.
According to MOSL, Coforge remains one of the fastest-growing companies in the sector and is likely to sustain this trajectory in the medium term. That said, aggressive investments in capacity and acquisitions have meant that free cash flow (FCF) growth has lagged both mid-cap and large-cap peers.
Management also expects cash flow conversion to improve meaningfully going forward.
Motilal Oswal values Coforge at 38 times its FY27 estimated earnings per share (EPS).
Shares of Coforge Ltd. ended 0.36% lower on Thursday at ₹1,733. The stock has fallen 10% so far in 2025.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsCoforgeshare market today