This multibagger stock doubled shareholder's money in 1 year; hit all-time high today

Shares of Coforge Limited have surged from Rs 2,096 to Rs 5,544 mark today in the last 12 months - yielding around 164.5 per cent in this period. In comparison, the Nifty 50 index gained over 52 per cent and the S&P BSE Sensex rose over 52 per cent.
 
The multibagger stock has zoomed 1,239 per cent in the last five years and has risen 102 per cent since the beginning of this year. An amount of Rs 5 lakh invested in this stock a year ago would have turned into Rs 13.22 lakh today.
 
The stock rose 2 per cent to hit an all-time high of Rs 5,544 on Monday. With a market capitalisation of Rs 32,976 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.

"We raise Coforge's multiple to 33X (earlier 30X) given 1) acceleration in organic growth momentum, 2) consistent strong large deal wins with increasing deal sizes, 3) ability to leverage acquisition and partnerships to materially accelerate revenue growth and 5) scope to further improve margins. We anticipate revenues to grow by 37.7% YoY USD in FY22E led by 24% YoY USD growth in organic revenues and $88 mn (+20% YoY growth over FY21 revenues of ~$73 mn) contribution from SLK Global," said Prabhudas Lilladher.

"For FY22, management mentioned that they can sustain EBITDA pre-RSU at 19% supported by tailwinds from 1) continued growth in travel and discount reversal, 2) gradual increase in offshoring 3) increase in utilization and 4) revenue growth leverage. Headwinds include wage increase and higher retention and hiring costs and large deal transition costs," the brokerage house noted.

According to MarketsMojo, the company has a low Debt to Equity ratio (avg) at -0.36 times and has High Management Efficiency with a high ROE of 17.83%. The technical trend has improved from Mildly Bullish on September 14, 2021, and the stock is technically in a Bullish range. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and DOW. However, it noted that the valuation is very expensive right now.

In August, Nomura India Investment Fund Mother Fund acquired a stake in the IT solutions company. Nomura India Investment Fund Mother Fund bought 3.5 lakh equity shares or 0.57 per cent stake at Rs 4,710 per share, according to bulk deal data on NSE.

On the other hand, promoter Hulst B V sold a 5.52 percent stake in Coforge on August 4. Hulst BV sold 33.5 lakh equity shares in Coforge at Rs 4,738.67 per share on the NSE, the bulk deals data showed on August 4.

The IT company, formerly known as NIIT Technologies, reported a 54.7 per cent rise in net profit to Rs 123.6 crore in Q1 against a net profit of Rs 79.9 crore in the corresponding period a year ago.

Income climbed 38.3 per cent to Rs 1,461.6 crore in Q1 from Rs 1,057 crore in the same period a year ago.

The company's board has declared the first interim dividend of Rs 13 per equity share for the financial year FY2021-22.