CLSA Maintains Outperform Rating on Coforge at ₹2,275, Aligning with Morgan Stanley's Positive Outlook

Coforge Limited has received positive analyst coverage from two major investment firms, with CLSA maintaining an 'Outperform' rating and setting a price target of ₹2,275, while Morgan Stanley continues its Overweight rating with a ₹2,030 price target.

Analyst Recommendations Overview

The IT services company has garnered favorable attention from leading investment banks, reflecting confidence in its market position and growth trajectory. The analyst ratings and price targets are summarized below:

Analyst Firm	Rating	Price Target
CLSA	Outperform	₹2,275
Morgan Stanley	Overweight	₹2,030

CLSA's Outperform Rating

CLSA's 'Outperform' rating indicates the investment firm's expectation that Coforge's stock will deliver superior returns compared to the broader market or sector peers. The ₹2,275 price target represents CLSA's assessment of the company's intrinsic value based on their analysis.

Morgan Stanley's Continued Support

Morgan Stanley has maintained its Overweight rating on the company, demonstrating sustained confidence in Coforge's prospects. The ₹2,030 price target from Morgan Stanley complements the positive sentiment expressed by CLSA.

Market Positioning

Coforge operates in the IT services sector, providing digital transformation and technology consulting services to global clients. The positive ratings from both CLSA and Morgan Stanley reflect analysts' views on the company's competitive position and growth potential in the dynamic IT services landscape.

The alignment of these two prominent investment firms in their positive outlook for Coforge adds to the overall bullish sentiment surrounding the company's stock. Investors may view these ratings as indicators of potential upside in Coforge's market performance, although it's important to note that stock performance can be influenced by various factors beyond analyst predictions.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.77%	+8.31%	-4.05%	-28.35%	-25.15%	+105.81%

Coforge Limited has released a comprehensive investor presentation analyzing the earnings per share (EPS) impact and financial projections for its $2.35 billion acquisition of Encora. The presentation, submitted under Regulation 30 on December 28, 2025, demonstrates that the transaction will be EPS accretive and provides detailed pro forma financials for the combined entity.

EPS Accretive Transaction Analysis

The investor presentation reveals that the Encora acquisition will enhance Coforge's earnings per share, with the combined entity expected to generate stronger financial performance. The transaction is projected to close around Q1 FY27, with the presented financials being pro forma in nature.

Financial Metric	Coforge Standalone	Encora	Combined Entity
Revenue (US$ Mn)	2,136	690	2,826
EBITDA (US$ Mn)	384	148	533
EBITDA Margin	18.00%	21.50%	18.90%
EBIT (US$ Mn)	298	100	399
EBIT Margin	14.00%	14.50%	14.10%
PAT (US$ Mn)	203	79	283
PAT Margin	9.50%	11.50%	10.00%
EPS (US$)	52.10	-	53.70

Updated Shareholding Structure and Share Capital

The presentation provides detailed calculations for the post-closing share capital structure, including the impact of potential QIP funding for retiring Encora's term loan. The preferential issuance price to Encora sellers is set at ₹1,815.91 per share, representing an 8.50% premium to the closing price of ₹1,674 as of the signing date.

Share Capital Component	Number of Shares (Mn)
Current Coforge Outstanding Shares	335.00
Shares for Cigniti Merger	12.70
Shares to Encora Sellers	93.80
Potential QIP Shares	27.20
Total Post-Closing Shares	468.70

Encora's Financial Profile and Strategic Value

Encora brings significant strategic value with its AI-native capabilities and strong financial metrics. The company operates with a unique distributed delivery model, maintaining approximately 9,100 global workforce across 20 countries with 33 innovation labs.

Encora Key Metrics	Details
FY26E Revenue	US$600.00 million
FY26E EBITDA Margin	19.00%
Revenue per FTE	US$74,000
FCF to PAT Conversion	~90.00%
Global Workforce	~9,100 employees
Large Client Accounts (>US$10Mn)	11 accounts
Geographic Distribution	49% India, 33% LATAM

AI-Led Engineering Capabilities and Market Position

The acquisition positions the combined entity as a US$2.50 billion technology services powerhouse with enhanced AI capabilities. Encora's AIVA platform and AI-first approach complement Coforge's existing capabilities, creating 45 client relationships above US$10 million in size.

Combined Entity Highlights	Details
Total Client Relationships (>US$10Mn)	45 accounts
Encora Top 10 Client Tenure	10+ years average
AI Platform	AIVA - Agentic AI Platform
Service Verticals	Hi-Tech, Healthcare, BFSI
Innovation Labs	33 global locations

The comprehensive investor presentation underscores the strategic rationale behind the Encora acquisition, demonstrating clear EPS accretion and enhanced capabilities in AI-led digital engineering. With detailed financial projections and shareholding structures now disclosed, the transaction represents a transformative step for Coforge in establishing scaled AI-native engineering capabilities in the competitive technology services market.