Sagility India witnessed a strong 5% rally on Thursday, reaching a new high of ₹51.35 per share, marking the eighth consecutive session of gains. The stock has surged over 29% during this period, continuing its strong upward momentum since its listing.
Since its market debut on November 12, 2024, Sagility India shares have surged more than 71% from their issue price of ₹30, and gained over 65% from their listing price of ₹31.06.
Analyst Optimism Fuels Rally
The surge in Sagility India’s share price comes after global brokerage firm Jefferies initiated coverage on the stock with a ‘Buy’ rating and a target price of ₹52 per share. Jefferies highlighted Sagility’s strong position as a healthcare-focused BPM (Business Process Management) firm, known for its deep domain expertise and comprehensive service offerings. The brokerage firm expects the company’s EBIT margins to nearly double by FY27, driven by the normalisation of depreciation and amortisation costs.
Jefferies projects a 31% CAGR in EBIT over the period FY25-27, alongside a 40% CAGR in earnings, which is expected to be the highest among its peers. Furthermore, the reduction in debt is anticipated to lower interest costs, which will further contribute to earnings growth.
Another major player, JPMorgan, also expressed optimism about Sagility India, initiating coverage with an ‘Overweight’ view and a target price of ₹54 per share. JPMorgan highlighted the growth potential for Sagility India from the increasing trend of outsourcing in the US healthcare sector.
Sagility India IPO and Market Performance
Sagility India’s ₹2,106.60 crore IPO, which opened between November 5 and 7, was met with strong investor interest, receiving 3.2 times the bids. The issue was entirely an offer for sale, with 70.22 crore equity shares available. The IPO price was set at ₹28 to ₹30 per share.
At 11:15 AM on Thursday, Sagility India shares were still locked in at a 5% upper circuit at ₹51.35, pushing the company’s market capitalisation above ₹24,000 crore.
