Sagility India shares surged 5% to a new high of ₹51.35 on Thursday, extending a positive trend for the eighth consecutive session. The stock has jumped over 29% in the past eight sessions, reflecting strong investor confidence following bullish coverage from global brokerage firms like Jefferies and JPMorgan.
Sagility India Stock Price Hits New High on Strong Market Rally
Shares of Sagility India were locked in at a 5% upper circuit on Thursday, soaring to a fresh high of ₹51.35 per share, continuing its impressive rally. This marks the eighth consecutive session of gains for the stock, which has jumped over 29% during this period, signaling robust investor interest.
Since making its stock market debut on November 12, 2024, Sagility India has seen a remarkable rise in its stock price, gaining more than 71% from its issue price of ₹30. The shares also soared over 65% from their listing price of ₹31.06 on the BSE and NSE, as investors showed strong enthusiasm for the company’s future prospects.
The company’s initial public offering (IPO) was well-received, with the issue closing 3.2 times oversubscribed. The ₹2,106.60-crore IPO was entirely an offer for sale, with 70.22 crore equity shares being offered to the public. The price band for the IPO was set at ₹28 to ₹30 per share, and the stock’s debut on the bourses showed a 3.5% premium over the issue price.
Brokerages Remain Bullish on Sagility India
The recent surge in Sagility India stock comes after a positive outlook from leading global brokerage firms. Jefferies, a renowned brokerage, initiated coverage on the stock with a ‘Buy’ rating and a target price of ₹52 per share. Jefferies highlighted Sagility India as a leading healthcare-focused BPM (Business Process Management) firm, noting its deep domain expertise and end-to-end service offerings, which position the company well to gain market share in the growing healthcare outsourcing sector.
Jefferies expects the company’s EBIT margins to nearly double from FY24 to FY27, driven by the normalization of depreciation and amortization (D&A) costs. This, in turn, is expected to result in a 31% compound annual growth rate (CAGR) in EBIT over FY25-27.
Additionally, Jefferies foresees a significant reduction in interest costs due to deleveraging of the company’s balance sheet, which is projected to boost earnings growth at a remarkable 40% CAGR from FY25 to FY27—the highest among its peers.
Another foreign brokerage, JPMorgan, has also expressed optimism about Sagility India, initiating coverage with an ‘overweight’ rating and a target price of ₹54 per share. JPMorgan cited strong tailwinds for Sagility India, particularly from increasing outsourcing within the US healthcare industry, and expects a 50% earnings CAGR for the company between FY24 and FY27.
Sagility India’s Market Capitalization Soars
As of 11:15 AM on Thursday, Sagility India shares remained locked in at the 5% upper circuit at ₹51.35 per share, marking a market capitalization of over ₹24,000 crore. This rapid growth in stock price reflects strong investor sentiment and growing confidence in the company’s future prospects, particularly in the lucrative healthcare outsourcing market.
Looking Ahead
With strong backing from leading brokerages and a solid financial outlook, Sagility India appears poised to continue its growth trajectory. As the company expands its footprint in the healthcare BPM sector, investors are keeping a close watch on the stock, with the latest surge indicating that Sagility India may be one to watch in the near future.
The company’s ability to scale its operations and deliver on its growth targets will be key to sustaining its positive momentum, and analysts remain optimistic about its prospects, projecting strong earnings growth over the next few years.
