Coforge shares showing up to 80% fall in some app today; Here's why

Coforge shares split: Shares of midcap IT firm Coforge might be showing up to a 80 per cent in some trading apps today as the software solutions provider traded ex-split today. All the eligible shareholders of Coforge, as of the record date, shall see their holding being split in 1:5 ratio. This is their first stock split since listing in August 2004.

It means all the shares of Coforge, with a face value of Rs 10 each, shall be split or subdivided into five shares with face value of Rs 2 each as of today. Investors having Coforge shares in their demat account shall be eligible for this corporate action and the stock price shall be adjusted in the same ratio, that is, 1:5. From today, subdivided or adjusted shares shall be traded on bourses.

Shares of Coforge Ltd opened at Rs 1720.05 on Wednesday, signalling a nearly 80 per cent fall from its previous close at Rs 8,499.5 on Tuesday. The total market capitalization of the company stood close to Rs 57,500 crore mark. The indicated fall was due to the 'subdivision' of its equity shares in 1:5 ratio. However, the stock was seen at Rs 1,710 at the opening tick, up 0.60 per cent.

Tuesday, June 03 was the last to buy Coforge shares to become eligible for the aforesaid corporate actions as it marked the record date for it. The stock is under the 'T+1' settlement cycle. The record date determines the eligibility of shareholders for the corporate action. The move aims to increase stock liquidity and make the shares more affordable for retail investors.

In its filing on May 05, 2025, Coforge said, "We wish to inform that the Company has fixed Wednesday, June 04, 2025 as the 'Record Date' for determining the entitlement of equity shareholders for the purpose of subdivision/split of existing equity shares of the company, ranking pari passu in all respects."

Coforge reported a 34 per cent year-on-year (YoY) rise in its consolidated net profit of Rs 261.2 crore for the March 2025 quarter. Rupee revenue also missed expectations, coming in at Rs 3,409.9 crore. Operating margin came in at 13.2 per cent for the quarter ended on March 31, 2025. The company board also declared an interim dividend of Rs 19 per share.

Commenting on 4QFY25 results, InCred Equities said that revenue missed estimates while the EBIT margin was better. Order intake aided by mega deals. Growth in the adjusted LTM book is feeble. The recent price correction drives a change in our rating to 'hold' from 'reduce' earlier with a higher target price of Rs 8,006 from Rs 7,748 earlier (before adjustment).

Headcount grew by 403 employees QoQ to 33,497, while attrition decreased by 100 bps QoQ to 10.9 per cent, said Centrum Broking. Utilization was up 70 bps at 82 per cent. The company added 10 clients in Q4FY25 vs 14 in Q3FY25. As clients accelerate legacy modernization and AI-led transformation, discretionary technology budgets are steadily making a comeback, it said.

"With equity-based compensation charges set to taper off as prior grants vest, the management expects continued margin expansion. We expect revenue, ebitda and profit to clock 20.4 per cent, 34.1 per cent and 59.3 per cent CAGR over FY25-FY27E. We have revised FY26E/FY27E EPS downwards by 2.5 per cent/3.9 per cent," it added with a 'buy' rating with a target price of Rs 9,331.

Despite headwinds, Coforge expects strong growth across business segments, driven by recent acquisitions & key deal wins, said Choice Broking. "While near-term conditions may mildly impact key sectors, we have marginally reduced our estimates by 1-3 per cent and adopted a conservative view on margin expansion," it added with a 'buy' with a trimmed target price of Rs 10,765.