Sagility India hits the roof on broker's bullish call

Sagility India hit an upper circuit limit of 5% at Rs 46.09 after a global brokerage firm initiated coverage on the stock with a 'buy' rating and a target price of Rs 52.

The brokerage highlighted Sagility India's position as a leading US-healthcare-focused BPM firm with deep domain expertise. The firm expects the company to achieve a revenue CAGR of 12% and a profit CAGR of 40% between FY25 and FY27, supporting its current P/E multiples. ?

The broker noted several factors driving Sagility's growth, including sustained double-digit revenue growth, normalization of depreciation and amortization (D&A) costs, and debt reduction efforts, which are expected to boost EPS.

Sagility India provides technology-enabled business solutions and services to clients in the US healthcare industry. It is a pure-play healthcare focused services provider, and its clients include payers (US. health insurance companies, which finance and reimburse the cost of health services) and providers (primarily hospitals, physicians, and diagnostic and medical devices companies).

The company?s consolidated net profit surged 235.64% to Rs 117.34 crore on 21.10% rise in revenue from operations to Rs 1,325 crore in Q2 FY25 over Q2 FY24.

Sagility India made its stock market debut on 12 November 2024. The stock listed at Rs 31.06, a premium of 3.53% over its issue price of Rs 30. The IPO, which was open for subscription from November 5 to 7, 2024, was oversubscribed 3.20 times.

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