- Coforge share price rebounded on Thursday after plunging as much as 8.7% in the previous session following Chairman Om Prakash Bhatt’s resignation.
- CLSA retained its High Conviction Outperform rating and ₹2,170 target, saying the chairman’s exit does not constitute a major governance red flag.
- Nuvama remains bullish on Coforge’s growth outlook, while other brokerages argue the board issue should have limited impact on the IT company’s operations and earnings.
Coforge share price rebounded on Thursday as investors reassessed governance concerns triggered by the sudden resignation of Chairman Om Prakash Bhatt, with several brokerages maintaining bullish calls on the IT services company.
The recovery follows a volatile Wednesday session in which Coforge shares fell as much as 8.7% to ₹1,780.10 after Bhatt stepped down as chairman and non-executive independent director with immediate effect. The stock later recovered part of those losses and closed at ₹1,847.90.
The resignation initially raised governance concerns because it followed an internal audit review that identified gaps in Coforge’s board evaluation process. However, analysts are increasingly separating the board-level issue from the company’s underlying growth and earnings outlook.
Why Is Coforge Share Price Rising Today?
The Coforge share price is rising today as brokerages push back against fears that Bhatt’s resignation signals a broader problem with the company’s financial or operational performance.b CLSA retained its High Conviction Outperform rating on Coforge and maintained a target price of ₹2,170, implying roughly 17% upside from Wednesday’s closing level.
The brokerage does not view the chairman’s departure as a significant governance red flag and remains focused on Coforge’s operating outlook, including potential revenue synergies from its Encora acquisition.
Nuvama is even more bullish, maintaining a Buy rating with a ₹2,350 target price. Its positive view is supported by expectations for industry-leading growth, improving cash generation and continued execution. The bullish brokerage commentary is helping Coforge shares recover after Wednesday’s sharp selloff.
Why Did Coforge Shares Fall After OP Bhatt’s Resignation?
The controversy centres on Coforge’s Board Evaluation Exercise and Board Evaluation Report (BER). As part of its Q2 FY26 internal audit plan, Coforge reviewed the process used for the board evaluation exercise conducted under Bhatt’s guidance.
The review identified concerns over how the evaluation was conducted and presented, including gaps involving material information related to the chairman’s performance evaluation. Coforge’s board subsequently sought an explanation from Bhatt.
Bhatt maintained that he had acted in good faith but resigned before the board completed its assessment of his response. Importantly for investors, Coforge has said the matter does not relate to its financial statements, financial reporting or other financial matters and has no bearing on its business operations or existing guidance. That distinction is now central to the bullish brokerage case.
CLSA Says Coforge Governance Fears Are Overdone
CLSA’s assessment provides one of the strongest counterarguments to Wednesday’s market reaction. The brokerage pointed to Coforge’s proactive disclosure of the issue and noted improvements in the company’s governance structure, including an increase in independent directors in recent years.
CLSA also remains positive on Coforge’s operating performance and expects the Encora acquisition to create additional revenue opportunities. The brokerage retained its ₹2,170 Coforge share price target, keeping the stock among its high-conviction outperform calls.
Choice Institutional Equities has taken a similar position, retaining a Buy rating and ₹2,050 target, while describing the potential near-term impact on operations and earnings as limited.
Coforge Share Price Target: What Are Brokerages Saying?
Brokerage sentiment remains surprisingly positive despite the chairman’s departure. CLSA has a ₹2,170 target with a High Conviction Outperform rating, while Nuvama maintains a Buy rating and ₹2,350 target. Choice Institutional Equities has retained its Buy call with a ₹2,050 target.
The common argument is straightforward: the governance issue needs monitoring, but there is currently little evidence that it changes Coforge’s earnings trajectory, client relationships or operational outlook.
That makes execution the next test. Strong deal wins, cash conversion and successful integration of Encora could help shift investor attention back toward fundamentals. Any further governance disclosures, however, could quickly bring the chairman’s resignation back into focus.
Coforge Share Price Outlook: Is the Worst of the Selloff Over?
The Coforge share price outlook has improved as Thursday’s rebound suggests investors are beginning to differentiate between a board-governance issue and deterioration in the underlying business.
Wednesday’s drop to ₹1,780.10 demonstrated how sensitive the stock remains to governance headlines. However, the subsequent recovery and continued bullish calls from CLSA, Nuvama and Choice suggest analysts do not currently expect a material hit to Coforge’s earnings.
The key question now is whether the company can contain the issue at board level while maintaining its growth trajectory.
If it does, attention could increasingly shift toward brokerage targets between ₹2,050 and ₹2,350. But further governance concerns could keep volatility elevated even if the operating business remains strong.
Several brokerages remain bullish. CLSA maintains a High Conviction Outperform rating, while Nuvama and Choice retain Buy ratings. Investors still need to monitor the company’s response to the board-governance concerns.
Bhatt resigned following disagreements surrounding Coforge’s board evaluation process after an internal audit identified process and disclosure concerns. He said he had acted in good faith.
The rebound and bullish brokerage targets suggest analysts believe the underlying growth story remains intact. However, further recovery will depend on Coforge maintaining operational performance and resolving investor concerns around governance.