Coforge (COFORGE)

FairStock Score: 70/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Coforge through Graham's lens first: the numbers must protect me. At ₹1812, market cap ₹80,216 Cr, P/E 37.18 and P/B 6.38, I am paying a hefty price for a software consultant. Book value is ₹283.96, and Graham Number is only ₹407.30, giving a margin of safety of -191.13%. That is not a bargain; it is optimism priced in. Yet the business quality is better than the valuation comfort. ROE is 18.98%, ROCE 20.34%, debt/equity is just 0.08, Piotroski F-Score is 8/9, and Altman Z-Score 4.39—signs of financial strength and low insolvency risk. Growth is real: sales grew 66.66%, profit 35.77%, and five-year revenue CAGR is 23.56%. Latest quarter sales were ₹4,188 Cr with net profit ₹297 Cr. PEG of 1.36 and EV/EBITDA of 18.33 suggest the market already appreciates this. The blemish is cash: free cash flow is ₹-1,201 Cr. For a consultancy, I want profits converting into cash, not just accounting growth. Also, promoter holding is 0.00%, and dividend yield is 0.88%, so I have no promoter skin in the game and little cash returned. FairStock score 70/100 STEADY sounds fair. Coforge looks like a Fast Grower with a decent moat hinted by returns and low debt, but at this price, Graham would demand a much wider discount. I would wait for free cash flow to turn positive and valuation to offer a margin of safety before buying.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer