InCred Equities - Coforge Limited

	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Revenue (Rsm)	80,146	91,790	113,733	129,250
Operating EBITDA (Rsm)	14,058	15,053	19,335	22,619
Net Profit (Rsm)	6,943	8,081	11,447	14,071
Core EPS (Rs)	154.3	137.9	170.0	195.0
Core EPS Growth	41.9%	(10.7%)	23.3%	14.7%
FD Core P/E (x)	72.68	62.68	47.74	41.62
DPS (Rs)	64.0	76.0	94.9	115.0
Dividend Yield	0.79%	0.94%	1.15%	1.32%
EV/EBITDA (x)	35.94	33.97	28.35	25.58
P/FCFE (x)	68.78	114.76	57.78	35.51
Net Gearing	(0.5%)	10.5%	1.6%	(16.5%)
P/BV (x)	16.37	13.97	13.19	12.27
ROE	33.0%	25.6%	29.5%	31.6%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Total Net Revenues	80,146	91,790	113,733	129,250
Gross Profit	26,087	29,910	37,532	42,652
Operating EBITDA	14,058	15,053	19,335	22,619
Depreciation And Amortisation	(2,585)	(3,186)	(4,475)	(4,853)
Operating EBIT	11,473	11,867	14,859	17,765
Financial Income/(Expense)	(634)	(1,186)	41	491
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	4	30	57	65
Profit Before Tax (pre-EI)	10,843	10,711	14,957	18,321
Exceptional Items
Pre-tax Profit	10,843	10,711	14,957	18,321
Taxation	(2,061)	(2,093)	(3,291)	(4,031)
Exceptional Income - post-tax	(1,326)	(261)
Profit After Tax	7,456	8,357	11,667	14,291
Minority Interests	(513)	(276)	(220)	(220)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	6,943	8,081	11,447	14,071
Recurring Net Profit	9,595	8,603	11,447	14,071
Fully Diluted Recurring Net Profit	9,595	8,603	11,447	14,071

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
EBITDA	14,058	15,053	19,335	22,619
Cash Flow from Invt. & Assoc.
Change In Working Capital	(1,027)	(2,800)	(4,012)	(228)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(513)	(276)	(220)	(220)
Other Operating Cashflow
Net Interest (Paid)/Received	(806)	(1,256)	(300)
Tax Paid	(2,800)	(3,661)	(3,291)	(4,031)
Cashflow From Operations	8,912	7,060	11,512	18,140
Capex	(1,582)	(2,655)	(2,400)	(2,200)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(1,134)	177	398	556
Cash Flow From Investing	(2,716)	(2,478)	(2,002)	(1,644)
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(4,285)	(4,781)	(6,296)	(7,739)
Preferred Dividends
Other Financing Cashflow	(1,297)	(566)
Cash Flow From Financing	(5,582)	(5,347)	(6,296)	(7,739)
Total Cash Generated	614	(765)	3,214	8,757
Free Cashflow To Equity	7,330	4,405	9,112	15,940
Free Cashflow To Firm	7,002	5,838	9,810	16,496

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Total Cash And Equivalents	5,787	3,352	6,566	15,323
Total Debtors	16,131	18,039	23,884	25,462
Inventories
Total Other Current Assets	4,146	4,634	4,634	4,634
Total Current Assets	26,064	26,025	35,084	45,419
Fixed Assets	6,866	7,629	5,554	2,900
Total Investments	2,484	2,339	2,339	2,339
Intangible Assets	16,299	16,133	16,133	16,133
Total Other Non-Current Assets	5,121	8,951	8,951	8,951
Total Non-current Assets	30,770	35,052	32,977	30,323
Short-term Debt	454	1,544	1,544	1,544
Current Portion of Long-Term Debt
Total Creditors	6,481	8,062	9,895	11,245
Other Current Liabilities	10,458	5,709	5,709	5,709
Total Current Liabilities	17,393	15,315	17,148	18,498
Total Long-term Debt	5,168	5,716	5,716	5,716
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	2,574	2,777	2,777	2,777
Total Non-current Liabilities	7,742	8,493	8,493	8,493
Total Provisions
Total Liabilities	25,135	23,808	25,641	26,991
Shareholders Equity	30,825	36,266	41,417	47,749
Minority Interests	874	1,003	1,003	1,003
Total Equity	31,699	37,269	42,420	48,752

	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Revenue Growth	24.6%	14.5%	23.9%	13.6%
Operating EBITDA Growth	26.0%	7.1%	28.4%	17.0%
Operating EBITDA Margin	17.5%	16.4%	17.0%	17.5%
Net Cash Per Share (Rs)	2.65	(62.63)	(10.30)	111.75
BVPS (Rs)	495.82	581.18	615.15	661.75
Gross Interest Cover	14.23	9.45	49.53
Effective Tax Rate	19.0%	19.5%	22.0%	22.0%
Net Dividend Payout Ratio	48.1%	56.9%	55.0%	55.0%
Accounts Receivables Days	68.37	67.94	67.27	69.68
Inventory Days
Accounts Payables Days	42.68	42.89	43.01	44.55
ROIC (%)	29.9%	30.2%	27.9%	31.8%
ROCE (%)	26.3%	23.3%	24.6%	26.2%
Return On Average Assets	17.5%	16.2%	18.0%	19.3%

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

(91) 02241611554 smit.gosrani@incredresearch.com

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Market Data

Source: Bloomberg