Sagility India hits 52-week high, rises 65% since IPO listing in November

The stock logged 17.63% over the past seven days after two global brokerages, Jefferies and JP Morgan, commented positively about the company over this week.

Jefferies’ note

Jefferies on Friday, December 20, stated that Sagility India is well-positioned as a key player in its segment, with in-depth domain knowledge, according to news reports.

It projected the company’s revenue and net profit to grow at a compound average growth rate (CAGR) of 12% and 40%, respectively, between FY25 and FY27. It also expects the company’s EBIT margin to nearly double in the same period.

Jefferies underlined a few factors as key drivers in the newly-listed company’s growth, including a favourable earnings growth outlook, strong positioning to maintain double-digit revenue growth, efforts to reduce debt, a clear growth strategy and its intense focus on the US healthcare BPM market, among others.

JP Morgans’ positive outlook

JP Morgans reiterated Jefferies' sentiment and posted a positive outlook about the healthcare services provider, according to multiple media reports.

On Tuesday, December 24, the brokerage initiated coverage on the company. It stated that Sagility is strongly positioned in its niche healthcare service business, catering to non-discretionary spending, which provides a stable growth outlook despite volatile market conditions. It also noted that secular tailwinds are arising for the stock, particularly because of an upward trend of outsourcing in the US healthcare market.

JP Morgans also said that it is expecting the company’s adjusted earnings to grow at a CAGR of 18% between FY24 and FY27.

About Sagility

Incorporated in 2001, Sagility provides technology-enabled business solutions and services to a mainly US-based clientele. Its clients comprise Payers including, United States health insurance companies and Providers including, hospitals, physicians, and diagnostic and medical devices companies.

The scrip closed in the green at ₹51.30, up 4.84% on the National Stock Exchange (NSE).

The company had a market cap of ₹24,047.98 crore as of December 26, according to the NSE.