COFORGE - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.0
| Stock Code | COFORGE | Market Cap | 62,962 Cr. | Current Price | 1,464 ₹ | High / Low | 1,994 ₹ |
| Stock P/E | 41.3 | Book Value | 252 ₹ | Dividend Yield | 1.04 % | ROCE | 21.7 % |
| ROE | 21.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,368 ₹ | DMA 200 | 1,471 ₹ |
| Chg in FII Hold | -9.87 % | Chg in DII Hold | -11.0 % | PAT Qtr | 590 Cr. | PAT Prev Qtr | 181 Cr. |
| RSI | 59.0 | MACD | 33.1 | Volume | 85,53,282 | Avg Vol 1Wk | 50,70,096 |
| Low price | 1,008 ₹ | High price | 1,994 ₹ | PEG Ratio | 1.65 | Debt to equity | 0.03 |
| 52w Index | 46.2 % | Qtr Profit Var | 309 % | EPS | 41.5 ₹ | Industry PE | 20.9 |
COFORGE shows good potential for swing trading. The current price of ₹1,464 is above its 50 DMA (₹1,368) and near its 200 DMA (₹1,471), indicating strong technical support. RSI at 59.0 suggests healthy momentum without being overbought, while MACD at 33.1 confirms bullish sentiment. The company reported a sharp quarterly PAT growth (₹181 Cr. → ₹590 Cr., up 309%), and efficiency metrics (ROCE 21.7%, ROE 21.5%) are strong. However, valuations are stretched with a P/E of 41.3 compared to industry P/E of 20.9, and PEG ratio of 1.65 suggests moderate growth prospects. Institutional selling by both FIIs (-9.87%) and DIIs (-11.0%) adds caution.
✅ Optimal Entry Price: ₹1,420–₹1,440 (closer to 50 DMA support)
📈 Exit Strategy (if already holding): Consider booking profits near ₹1,550–₹1,580 unless momentum breaks out strongly above resistance.
🌟 Positive
- 📈 Quarterly PAT growth (₹181 Cr. → ₹590 Cr., up 309%).
- 💹 EPS of ₹41.5 reflects strong earnings power.
- 📊 ROCE of 21.7% and ROE of 21.5% show efficient capital use.
- 📉 Debt-to-equity ratio of 0.03 indicates negligible leverage risk.
⚠️ Limitation
- 📉 P/E of 41.3 is much higher than industry average of 20.9.
- 📊 PEG ratio of 1.65 suggests moderate growth prospects.
- 💸 Dividend yield of 1.04% is modest.
- 📉 Institutional selling by FIIs and DIIs reduces confidence.
📰 Company Negative News
- 📉 Decline in FII holding (-9.87%) shows reduced foreign investor confidence.
- 📉 Decline in DII holding (-11.0%) highlights domestic institutional caution.
📰 Company Positive News
- 📈 Strong quarterly PAT growth supports bullish sentiment.
- 💹 Debt-free status adds financial stability.
🏭 Industry
- 📊 Industry P/E at 20.9 is much lower than COFORGE’s 41.3, suggesting relative overvaluation.
- 💻 IT services sector benefits from global digital transformation demand but faces margin pressures and client concentration risks.
✅ Conclusion
COFORGE is a good swing trade candidate with strong profit growth, efficient capital use, and technical support near DMA levels. Entry around ₹1,420–₹1,440 is optimal, with profit booking near ₹1,550–₹1,580 advisable if already holding. Caution is warranted due to stretched valuations and significant institutional selling.
Would you like me to also compare COFORGE’s swing trade outlook with peers like Infosys or LTIMindtree to highlight relative opportunities in the IT services sector?