InCred Equities - Coforge Limited

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	91,790	121,912	157,843	183,807
Operating EBITDA (Rsm)	15,053	19,866	27,149	32,166
Net Profit (Rsm)	8,081	8,121	14,776	18,217
Core EPS (Rs)	137.9	122.0	206.0	254.0
Core EPS Growth	(10.7%)	(11.5%)	68.8%	23.3%
FD Core P/E (x)	13.71	14.55	8.62	6.99
DPS (Rs)	76.0	76.0	121.4	147.6
Dividend Yield	4.28%	4.22%	6.38%	7.87%
EV/EBITDA (x)	7.69	6.16	4.58	3.64
P/FCFE (x)	25.10	17.20	8.46	7.87
Net Gearing	10.5%	8.0%	(8.6%)	(19.9%)
P/BV (x)	3.06	2.97	2.74	2.32
ROE	25.6%	22.3%	34.6%	36.1%
% 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	121,912	157,843	183,807
Gross Profit	29,910	40,477	52,404	61,208
Operating EBITDA	15,053	19,866	27,149	32,166
Depreciation And Amortisation	(3,186)	(4,580)	(5,525)	(6,249)
Operating EBIT	11,867	15,286	21,625	25,917
Financial Income/(Expense)	(1,186)	(1,072)	(957)	(761)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	30
Profit Before Tax (pre-EI)	10,711	14,214	20,668	25,156
Exceptional Items
Pre-tax Profit	10,711	14,214	20,668	25,156
Taxation	(2,093)	(3,201)	(4,764)	(5,811)
Exceptional Income - post-tax	(261)	(1,652)
Profit After Tax	8,357	9,361	15,904	19,345
Minority Interests	(276)	(1,240)	(1,128)	(1,128)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	8,081	8,121	14,776	18,217
Recurring Net Profit	8,603	8,121	14,776	18,217
Fully Diluted Recurring Net Profit	8,603	8,121	14,776	18,217

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	15,053	19,866	27,149	32,166
Cash Flow from Invt. & Assoc.
Change In Working Capital	(2,800)	(5,018)	(2,368)	(2,856)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(276)	(1,240)	(1,128)	(1,128)
Other Operating Cashflow
Net Interest (Paid)/Received	(1,256)	(1,351)	(1,588)	(1,588)
Tax Paid	(3,661)	(3,201)	(4,764)	(5,811)
Cashflow From Operations	7,060	9,056	17,301	20,783
Capex	(2,655)	(2,400)	(2,800)	(4,600)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	177	279	631	827
Cash Flow From Investing	(2,478)	(2,121)	(2,169)	(3,773)
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(4,781)	(4,981)	(8,127)	(10,019)
Preferred Dividends
Other Financing Cashflow	(566)	49
Cash Flow From Financing	(5,347)	(4,932)	(8,127)	(10,019)
Total Cash Generated	(765)	2,050	7,006	6,991
Free Cashflow To Equity	4,405	6,656	14,501	16,183
Free Cashflow To Firm	5,838	8,286	16,720	18,598

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	3,352	3,997	11,330	18,368
Total Debtors	18,039	25,602	31,095	36,210
Inventories
Total Other Current Assets	4,634	4,634	4,634	4,634
Total Current Assets	26,025	34,532	46,844	58,872
Fixed Assets	7,629	5,449	2,724	1,075
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	32,872	30,147	28,498
Short-term Debt	1,544	1,544	1,544	1,544
Current Portion of Long-Term Debt
Total Creditors	8,062	10,606	13,732	15,991
Other Current Liabilities	5,709	5,709	5,709	5,709
Total Current Liabilities	15,315	17,859	20,985	23,244
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	26,352	29,478	31,737
Shareholders Equity	36,266	39,821	46,540	54,774
Minority Interests	1,003	1,003	1,003	1,003
Total Equity	37,269	40,824	47,543	55,777

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	14.5%	32.8%	29.5%	16.4%
Operating EBITDA Growth	7.1%	32.0%	36.7%	18.5%
Operating EBITDA Margin	16.4%	16.3%	17.2%	17.5%
Net Cash Per Share (Rs)	(62.63)	(49.05)	56.77	154.93
BVPS (Rs)	581.18	598.53	649.11	763.95
Gross Interest Cover	9.45	11.31	13.62	16.32
Effective Tax Rate	19.5%	22.5%	23.0%	23.1%
Net Dividend Payout Ratio	56.9%	50.4%	55.0%	55.0%
Accounts Receivables Days	67.94	65.33	65.55	66.83
Inventory Days
Accounts Payables Days	42.89	41.84	42.13	44.25
ROIC (%)	30.2%	28.3%	37.1%	45.0%
ROCE (%)	23.3%	25.4%	32.1%	33.5%
Return On Average Assets	16.2%	18.4%	22.9%	24.0%

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

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

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Market Data

Source: Bloomberg