COFORGE CMP 1816.5. SHORT ENTRY at 1873, TARGET 1651, SL 1918.

COFORGE CMP 1816.5. SHORT ENTRY at 1873, TARGET 1651, SL 1918.

Technically, the stock looks overbought as RSI stands out at 73 and it shows a declining stage. Also, the stock has resistance above 1885 level. Hence it’s recommended to short sell the stock at around 1873, keeping a strict stop above price of Rs.1918 with a potential price target of Rs.1651. A Volume Weighted Average Price (VWAP) is trending lower and Coforge is still slightly below it, suggesting if reversal loses volume support, it may retrace again.

Some warnings on the company,

  Around 40% of revenue stems from the BFSI (banking, financial services, insurance) sector—this concentration makes Coforge vulnerable to sector-specific slowdowns.

  The top five clients account for ~37% of its total revenue—any reduction in client spending or loss could significantly impact performance.

Company profile:

Coforge is a global digital services and IT consulting firm focusing on sectors like banking, financial services, insurance (BFSI), travel, transport, healthcare, manufacturing, media.

The company offers,

·         Digital transformation: AI, GenAI, cloud, data analytics, cybersecurity, digital process automation, and enterprise applications

·         Product engineering and business process services with expertise in banking, insurance, travel, manufacturing, healthcare, and more.

·         High client retention: ~96.5% repeat business in Q1 FY25; average tenure of top 10 clients ~10+ years; NPS ~63%

·         The company has a presence in 23 countries with 30 delivery centers across India, Americas, Europe, APAC

·         The company is having its client base of 260+ global clients and a 96.5% client retention in Q1 FY25.