“Historically (during FY21-25), Coforge had reported high-teen revenue compound annual growth rate on account of stable management, strong order book and specialization in select verticals of banking and financial services, insurance and travel. Encora’s organic revenue growth, on the other hand, was lower at 7-10%,” said Elara Securities (India) report dated 29 December. Despite lower growth, Coforge is acquiring Encora at 3.9x EV/sales and around 21x EV/Ebitda in line with Coforge’s multiples, which appears expensive, it added.
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