Synopsis: The shares engaged in AI-driven IT services, digital transformation, and deep domain expertise are in focus as Global Brokerage firm CLSA initiated a Buy rating on the stock, with a target price of ₹2,426, implying an upside potential of upto 88%.
The shares of the IT company, which specialises in AI-driven IT services, digital transformation, and deep domain expertise across selected industry verticals, have been in the spotlight following CLSA’s report indicating an upside potential of up to 88 percent.
With a market capitalization of Rs. 41,047.73 Crores on the Day’s Trade, the shares of Coforge Limited declined by 6.87 percent, reaching a low of Rs. 1199.45 compared to its previous close of Rs. 1288.05.
Coforge Limited, engaged in AI-driven IT services, digital transformation, and deep domain expertise across selected industry verticals, is in focus following the leading Global brokerage firm, CLSA, initiating an Outperform rating with a Buy target of Rs. 2,426 with an upside Potential of upto 88 percent from the previous day’s close.
Signed a large $1.56 billion deal over a 13-year period with Sabre: Coforge has secured a long-term contract, providing stable, predictable revenue streams over more than a decade. This long-term contract provides the company with stable and predictable revenue streams, ensuring financial visibility and operational continuity over more than a decade.
Sabre risk seems manageable: Current exposure to Sabre is under control, with no immediate threats to operations or cash flow. The company has assessed its current engagement and determined that there are no immediate threats, suggesting a well-structured partnership with controlled risk.
Sabre has very high financial leverage and high solvency risk: Despite manageable near-term risk, Sabre’s debt levels and financial obligations may pose significant solvency concerns by 2029.
Guidance for 2026 by Sabre seems in line with street expectations: Sabre’s projected revenues and earnings for 2026 align with analysts’ consensus estimates, indicating no surprises.
See Coforge as a net beneficiary of the upcoming AI wave: Coforge stands out as a potential net beneficiary of the rapidly evolving AI wave. With its strong IT services foundation and strategic partnerships, the company is well-positioned to capitalize on AI-driven opportunities across industries.
About the Deal
Coforge, a mid-sized IT services company, has entered into a significant 13-year partnership with US-based Sabre Corporation, valued at around $1.56 billion. This deal marks a major expansion of Coforge’s presence in the global IT services market.
According to CEO Sudhir Singh, the agreement not only reinforces the long-standing relationship between the two companies but also positions Coforge to deliver innovative technology solutions and long-term value to Sabre. The partnership is expected to drive sustained growth for Coforge over the next decade while strengthening its capabilities in travel technology and related services.
The company’s revenue rose by 29 percent from Rs. 3,258 crores in December 2024 to Rs. 4,188 crores in December 2025. Meanwhile, Net profit rose from Rs. 256 crores to Rs. 297 crores in the same period.
The company demonstrates strong financial health, with a robust return on capital employed (ROCE) of 20.3% and a solid return on equity (ROE) of 16.0%. Its low debt-to-equity ratio of 0.14 indicates minimal reliance on debt, while a consistent dividend payout of 59% reflects a shareholder-friendly approach.
Coforge is a global digital services company that helps businesses use technology to improve their operations and grow. The company works closely with clients in select industries, developing a strong understanding of their processes and challenges.
By combining industry knowledge with modern technologies, Coforge supports organisations on their digital transformation journey. It follows a product engineering-led model and uses tools such as artificial intelligence, cloud computing, data analytics, integration, and automation to build smarter and more efficient businesses.
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