Why did Coforge shares soar suddenly; what was so special about its results? Kushal Gupta explains

In a chat with Zee Business Managing Editor Anil Singhvi, Market Analyst Kushal Gupta revealed the reasons or triggers behind the surge in the share price of Coforge. He even highlighted what was special about the quarterly results of the company.

Kushal said that he dug into the results of the company when the stock showed a growth of 4-5 percent after the release of the numbers. He said that the company has mentioned in its release that in FY22 it will log a growth of 17 percent in Constant Currency organic revenue which is a strong commentary.

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And it is only talking about organic growth. In case any inorganic or acquisition linked growth adds to it, then the company can further revise its guidance, he added.

The market analyst said that the company has estimated an increase in its margin guidance (EBITDA margin) of 18 percent in FY21 to 19 percent in FY22.

He added that if you will consider the quarters then even after giving a bonus the results of the company were stable at almost 13 percent. We did not notice any pressure on the EBITDA margin after giving the bonus, he said.

Also, the company has added 11 new clients between the quarters and has won 2 big deals. The expert said that the executable order book of the company for 12 months seems to be about 52 crore dollars.

Revealing one more interesting point he said that among the dollar revenues reported by the mid-cap IT companies, Coforge has reported the highest with 7.1 percent.

While talking about the order intake he said that in Q1 FY21 the company reported an order intake of around 18.6 crore dollar which increased in Q2 to 20.1 crore dollar. And in Q4 which is generally considered a weak or soft quarter for IT companies there also Coforge has reported a strong order intake similar to that of Q2.