Coforge Shares Tank: The Reasons | NDTV Profit
#Coforge fell to near one-year low today.
What caused the fall? What are the positives for the stock?
Rucha Somaiya with the details. #NDTVProfitStocks
For the latest news and updates, visit: https://ndtvprofit.com
What caused the fall? What are the positives for the stock?
Rucha Somaiya with the details. #NDTVProfitStocks
For the latest news and updates, visit: https://ndtvprofit.com
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TVTranscript
00:00 Coforge has tanked 10% today and how?
00:03 This mid-tier IT company announced its quarterly results yesterday and has clearly disappointed
00:08 the street.
00:09 The key takeaway for any IT company is its guidance and Coforge has suspended its guidance
00:15 which means that it is not sure of what is going to happen in the near future.
00:20 Now the company's executable order book, which means that the orders that will come into
00:25 play in the next 12 months is expected to grow slower at 17% versus the last fiscal
00:31 year which was at 20%.
00:34 Now this shows that the revenues are expected to be weaker in the coming quarters.
00:39 A few positive points on the flip side are its highest order book but again the question
00:44 of these order books converting into revenue still remains.
00:48 The new footprints for the company into verticals such as healthcare, retail and high-tech will
00:53 be positive through the latest Signity acquisition.
00:57 The 10% tank for Coforge clearly shows that there is disappointment in the street and
01:03 the negative points outweighs the positive ones for the stock.
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