Coforge share price declines 7% in 5 sessions; check what CLSA said in its latest note

Data show that the IT stock has slipped nearly 7% (6.81%) over the past five sessions (from the December 18 morning level to the December 24 closing level).

The recent slide in Coforge's stock price, among other reasons surrounding the IT sector, is the company's announcement to consider fundraising on Friday, December 26.

On December 22, the company said in its regulatory filing that its board is scheduled to meet on December 26, 2025, to consider and approve the proposal for raising of funds by way of issuance of equity shares or any other eligible securities through permissible modes, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method.

Why did the stock slide?

Analysts at CLSA, in its latest note on the IT stock, said that Coforge shares can react negatively to the fundraising news. They said the investor community typically does not like the uncertainty or the big bets around acquisitions. Last time when the fundraising was announced, the PE multiple had corrected by nearly 20% over March–April.

However, CLSA said, as reported by NDTV Profit, the stock rerated 50% by the end of calendar year 2024 from where it was when the fundraise was announced in March.

What is the P/E ratio?

The price-to-earnings (P/E) ratio is a widely used valuation metric in equity markets that shows how much investors are willing to pay for ₹1 of a company’s earnings. It is calculated by dividing a company’s current share price by its earnings per share (EPS).

A higher P/E ratio generally indicates expectations of stronger future growth, though it may also suggest that a stock is trading at a premium.

A lower P/E ratio can point to potential undervaluation or reflect concerns around earnings visibility, business risk or sectoral challenges. Investors commonly use the P/E ratio to compare valuations among Indian companies and across sectors.

Coforge launches EvolveOps.AI

On Wednesday, during the market hours, Coforge announced the launch of EvolveOps.AI, a next-generation agentic AI-powered IT operations management platform. It is designed to empower enterprises to prepare for an AI-first era, leveraging purpose-built hybrid cloud architecture & agentic operations for agility, resilience, and transformation.

“Powered by advanced Agentic AI agents, EvolveOps.AI delivers end-to-end autonomous operations across the lifecycle of enterprise systems running on a hybrid cloud ecosystem,” the company said in its press release.

By applying AI and machine learning across a unified data fabric for technology operations, EvolveOps. AI enables enterprises to cut down the noise, accelerate incident lifecycle management, and dramatically improve the reliability of mission-critical systems.

With EvolveOps.AI, enterprises have seen a 25% reduction in systems downtime, a 40% reduction in IT operational expenses, a 60% reduction in mean time to detection and mean time to resolution, and a 40% faster time to market for products, the press release added.