Sagility hits all time high in trade; JP Morgan 'Overweight' on stock

JP Morgan initiated coverage on Sagility with an 'Overweight' rating with a 12-month target price of Rs 54 per share

Sagility India shares hit 5 per cent upper circuit in Tuesday's trade and clocked an all time high at Rs 48.91 per share on BSE amid heavy volumes. On NSE, 20.779 million shares changed hands, while on BSE, 1.604 million shares were traded.

 

Around 10:40 AM, Sagility share price was up 4.98 per cent at Rs 48.91 per share on BSE. In comparison, the BSE Sensex was up 0.39 per cent at 78,842.78. The market capitalisation of the company stood at Rs 22,896.38 crore. The 52-week high of the company stood at Rs 48.91 per share and the 52-week low stood at Rs 27.02 per share.

 

 

Meanwhile, global brokerage JP Morgan initiated coverage on Sagility with an 'Overweight' rating and a 12-month target price of Rs 54 per share.

 

As per reports, JP Morgan believes that the IT-enabled services firm should enjoys structural tailwinds from rising outsourcing while its deep domain expertise and solid client relationships should drive better account mining.

 

It further said that Sagility is a play on the US healthcare operations spending which is under-penetrated in outsourcing at 22 per cent and the company can grow faster at 15 per cent from wallet share gains as the underlying market is expected to grow at 5 per cent along with outsourcing at a higher 9 per cent.

 

Earlier, Jefferies had also initiated coverage with a 'Buy' rating on sagility and had set the target price at Rs 52 per share. 

 

As per the brokerage, Sagility is a leading US healthcare-focused business process management (BPM) firm with deep domain

expertise and end-to-end service offerings which positions the company well to gain market share. 

 

Further, Jefferies expects Sagility to deliver revenue/PAT at 12 per cent/40 per cent compound annual growth rate (CAGR) over FY25-27 led by normalisation of depreciation and amortisation (D&A) costs and deleveraging. Superior earnings growth outlook is likely to sustain current PE multiples in Jefferies' view.

 

"In our view, Sagility is unlikely to witness PE derating given strong earnings outlook," the report said.  

 

Sagility is a global leader in business process transformation, offering innovative solutions to improve operational efficiency and customer experience. With expertise across various industries such as healthcare, insurance, and financial services, Sagility focuses on leveraging technology and data-driven insights to optimize processes and drive growth. 

 

Its services include digital transformation, analytics, automation, and customer engagement strategies, making it a trusted partner for businesses aiming to achieve sustainable success in a dynamic market environment.

 

Sagility shares were listed on the bourses on Tuesday, November 12, 2024. On the BSE, Sagility India shares opened at Rs 31.06, marking a 3.53 per cent premium over the IPO allotment price of Rs 30. Similarly, on the National Stock Exchange (NSE), the shares also listed with a 3.53 per cent premium at Rs 31.06.

 

In the past one year, Sagility shares have gained  per cent against Sensex's rise of 9.3 per cent.