InCred Equities - Coforge Limited

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	91,790	122,495	154,582	180,012
Operating EBITDA (Rsm)	15,053	19,875	26,588	31,502
Net Profit (Rsm)	8,081	8,401	14,695	18,065
Core EPS (Rs)	137.9	126.3	205.0	252.0
Core EPS Growth	(10.7%)	(8.4%)	62.3%	22.9%
FD Core P/E (x)	59.93	61.47	37.87	30.80
DPS (Rs)	76.0	76.0	120.8	146.5
Dividend Yield	0.98%	0.95%	1.45%	1.79%
EV/EBITDA (x)	32.50	26.19	20.81	17.35
P/FCFE (x)	109.75	75.68	36.37	34.83
Net Gearing	10.5%	7.9%	(8.6%)	(19.6%)
P/BV (x)	13.35	12.98	11.99	10.21
ROE	25.6%	22.1%	34.1%	35.8%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	91,790	122,495	154,582	180,012
Gross Profit	29,910	40,294	51,321	59,944
Operating EBITDA	15,053	19,875	26,588	31,502
Depreciation And Amortisation	(3,186)	(4,651)	(5,410)	(6,120)
Operating EBIT	11,867	15,224	21,178	25,382
Financial Income/(Expense)	(1,186)	(924)	(682)	(490)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	30
Profit Before Tax (pre-EI)	10,711	14,300	20,496	24,892
Exceptional Items
Pre-tax Profit	10,711	14,300	20,496	24,892
Taxation	(2,093)	(3,311)	(4,724)	(5,750)
Exceptional Income - post-tax	(261)	(1,405)
Profit After Tax	8,357	9,584	15,772	19,142
Minority Interests	(276)	(1,183)	(1,077)	(1,077)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	8,081	8,401	14,695	18,065
Recurring Net Profit	8,603	8,401	14,695	18,065
Fully Diluted Recurring Net Profit	8,603	8,401	14,695	18,065

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	15,053	19,875	26,588	31,502
Cash Flow from Invt. & Assoc.
Change In Working Capital	(2,800)	(5,090)	(1,937)	(2,797)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(276)	(1,183)	(1,077)	(1,077)
Other Operating Cashflow
Net Interest (Paid)/Received	(1,256)	(1,279)	(1,300)	(1,300)
Tax Paid	(3,661)	(3,311)	(4,724)	(5,750)
Cashflow From Operations	7,060	9,012	17,550	20,578
Capex	(2,655)	(2,400)	(2,800)	(4,600)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	177	355	618	810
Cash Flow From Investing	(2,478)	(2,045)	(2,182)	(3,790)
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(4,781)	(4,930)	(8,082)	(9,936)
Preferred Dividends
Other Financing Cashflow	(566)	49
Cash Flow From Financing	(5,347)	(4,881)	(8,082)	(9,936)
Total Cash Generated	(765)	2,086	7,286	6,852
Free Cashflow To Equity	4,405	6,612	14,750	15,978
Free Cashflow To Firm	5,838	8,246	16,668	18,088

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	3,352	4,033	11,319	18,171
Total Debtors	18,039	25,724	30,453	35,462
Inventories
Total Other Current Assets	4,634	4,634	4,634	4,634
Total Current Assets	26,025	34,391	46,406	58,268
Fixed Assets	7,629	5,378	2,767	1,247
Total Investments	2,339	2,339	2,339	2,339
Intangible Assets	16,133	16,133	16,133	16,133
Total Other Non-Current Assets	8,951	8,951	8,951	8,951
Total Non-current Assets	35,052	32,801	30,190	28,670
Short-term Debt	1,544	1,544	1,544	1,544
Current Portion of Long-Term Debt
Total Creditors	8,062	10,657	13,449	15,661
Other Current Liabilities	5,709	5,709	5,709	5,709
Total Current Liabilities	15,315	17,910	20,702	22,914
Total Long-term Debt	5,716	5,716	5,716	5,716
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	2,777	2,777	2,777	2,777
Total Non-current Liabilities	8,493	8,493	8,493	8,493
Total Provisions
Total Liabilities	23,808	26,403	29,195	31,407
Shareholders Equity	36,266	39,786	46,398	54,528
Minority Interests	1,003	1,003	1,003	1,003
Total Equity	37,269	40,789	47,401	55,531

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	14.5%	33.5%	26.2%	16.5%
Operating EBITDA Growth	7.1%	32.0%	33.8%	18.5%
Operating EBITDA Margin	16.4%	16.2%	17.2%	17.5%
Net Cash Per Share (Rs)	(62.63)	(48.51)	56.61	152.18
BVPS (Rs)	581.18	597.99	647.14	760.52
Gross Interest Cover	9.45	11.90	16.29	19.52
Effective Tax Rate	19.5%	23.2%	23.0%	23.1%
Net Dividend Payout Ratio	56.9%	50.3%	55.0%	55.0%
Accounts Receivables Days	67.94	65.20	66.32	66.83
Inventory Days
Accounts Payables Days	42.89	41.56	42.60	44.25
ROIC (%)	30.2%	28.1%	36.7%	44.6%
ROCE (%)	23.3%	25.3%	31.7%	33.2%
Return On Average Assets	16.2%	18.2%	22.7%	23.9%

(91) 22 4161 1543 abhishek.shindadkr@incredresearch.com

(91) 22 4161 1544 vikas.swami@incredresearch.com

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Market Data

Source: Bloomberg