Why Sagility shares hit back-to-back 5% upper circuit for two sessions?

Sagility India shares were locked in a 5 per cent upper circuit in Friday's trade on BSE at Rs 52.84 per share. The stock hit upper band for the second consecutive session. 

 

Around 12:36 PM, Sagility share price was up 4.99 per cent at Rs 52.84 per share on BSE. In comparison, the BSE Sensex was down 0.61 per cent at 79,459.72. The market capitalisation of the company stood at Rs 24,736.14 crore. The 52-week high of the stock stood Rs 56.44 per share and the 52-week low of the stock stood at Rs 27.02 per share.

 

Domestic brokerage Axis Capital in a report on January 2, 2025, initiated coverage on Sagility India with a 'Buy' rating with a target of Rs 60 per share. As per Axis Capital, the company is "underappreciated healthcare Business Process Management (BPM) champ" and is steadily growing as a healthcare BPM player.

 

"We initiate coverage on Sagility India with a 'Buy' rating and a target price of Rs 60, basis 17x Mar’27E EV/EBITDA (similar implied target multiple for FSOL)," the report read.

Sagility Ebitda expectation

 

The brokerage expects the company's dollar revenue/Ebit/PAT at 11.9 per cent/31.6 per cent/40 per cent compound annual growth rate (CAGR) over FY24-28E, aided by a steady Ebitda margin with lower amortisation and interest costs expected to result in a strong growth in Ebit/PAT. 

 

Ebitda refers to earnings before interest, tax, amotisation and depreciation (Ebitda), PAT refers to profit after tax and EBIT refers to Earnings before interest and tax.  Shares of Sagility India made a lacklustre debut on the bourses on November 12, 2024. Sagility India shares listed at Rs 31.06 on the BSE, reflecting a premium of 3.53 per cent against the IPO allotment price of Rs 30.

Sagility revenue expectation 

Similarly, on the National Stock Exchange (NSE) too, Sagility India shares listed at a premium of 3.53 per cent against the IPO allotment price, at Rs 31.06 on Tuesday. The stock has gained over 67 per cent on its issue price of Rs 30 per share. 

 

 

Sagility is a global provider of business process management (BPM) and outsourcing services, specialising in delivering solutions for industries such as healthcare, finance, and insurance. The company focuses on helping organisations optimize their operational processes by leveraging advanced technology, automation, and data analytics.