Motilal Oswal Recommends Buy on Coforge; Sets Rs 2500 Target Post-Encora Acquisition

• Motilal Oswal maintains a 'BUY' rating on Coforge with a target price of Rs 2500, implying a 49% upside.
• Coforge acquired Encora, a US-based engineering and AI-led services firm with ~USD500m revenue.
• Encora adds ~26% to Coforge’s FY26E revenue, operates at higher margins, and has ~9,300 employees.
• The acquisition's vertical mix (HiTech, Healthcare) aligns with Coforge's strategic growth areas.
• Transaction is capability-driven, potentially EPS accretive from day one, but talent retention is key.

Why It Matters: Motilal Oswal recommends buying Coforge, citing strong growth potential post-Encora acquisition.