Synopsis: Domestic brokerage Motilal Oswal Financial Services has reaffirmed its ‘Buy’ rating on Coforge Limited (NSE: COFORGE) with a target price of ₹1,880, representing a potential upside of 72% from its current levels. The brokerage highlights Coforge’s industry-leading execution in the Travel and BFS (Banking, Financial Services) verticals as a key differentiator in a high-interest-rate environment.

Why Motilal Oswal Coforge Buy Points to ₹1,880

While the broader Nifty IT index has struggled with a 15% correction in 2026 due to fears of a US recession and AI-led disruption, Coforge has maintained a resilient stance.

The Noida-based firm’s focus on large-scale digital transformations and its specialized expertise in the airline and hospitality industries are positioning it as a preferred “value-pick” for institutional investors looking beyond the tier-1 giants.

The “Buy” Thesis: Three Pillars of Growth

Motilal Oswal’s latest research report, released on March 23, 2026, outlines three primary reasons for the aggressive ₹1,880 target:

• Record Order Executions: Coforge entered the new quarter with an executable order book of $2.1 billion over the next 12 months. This high “revenue visibility” protects the company from the short-term discretionary spending cuts seen at competitors like Infosys and Wipro.
• Travel Vertical Dominance: As global travel and tourism hit post-pandemic highs in early 2026, Coforge’s specialized solutions for airlines and global distribution systems (GDS) have seen a 19% YoY growth. The brokerage notes that Coforge is “gaining market share” from legacy European vendors in this niche.
• Margin Expansion: Despite wage hikes and talent retention costs, Coforge has maintained its EBITDA margins near 18%. The brokerage expects margins to improve by another 100–150 basis points as the company optimizes its “offshore-onsite” ratio and leverages its internal AI-led coding platform, Quasar.

Valuation Context: A Premium Worth Paying?

Motilal Oswal argues that Coforge deserves a premium valuation compared to other mid-cap IT peers like LTIMindtree or Mphasis.

1. Earnings Trajectory: The brokerage projects a 14% Revenue CAGR and an 18% PAT CAGR over FY25–27.
2. Relative Value: At the current market price (CMP) of ₹1,100, the stock is trading at 34x its FY27E earnings. While higher than the 10-year average, Motilal Oswal believes the “consistency in large deal wins” justifies the multiple.
3. Dividend Yield: With a consistent payout ratio, the stock offers a stable dividend yield, providing a safety net for investors during periods of high market volatility.

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Market Snapshot: Coforge Ltd (March 23, 2026)

The stock showed strength today, outperforming the Nifty IT index even as the broader market faced “Black Monday” pressures.

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