Sagility India stock continues its remarkable performance in December, gaining 5% on December 24 to lock at its upper circuit of ₹48.91 on the BSE. The stock has soared an impressive 32% so far this month, reaching its highest level since its listing on November 12, 2024. It opened at ₹47.90, surpassing its previous close of ₹46.59.
Global Analysts See Further Upside
Jefferies’ Take
On December 20, Jefferies initiated coverage with a “Buy” rating, setting a target price of ₹52. The firm highlighted Sagility’s strengths as a healthcare-focused BPM (Business Process Management) company with domain expertise and end-to-end services.
Jefferies projects:
- EBIT Margin Growth: Doubling to 16.5% over FY24-27.
- Earnings Growth: 40% CAGR from FY25-27, driven by normalization of depreciation and amortization (D&A) costs and balance sheet deleveraging.
- Revenue Growth: 12% CAGR for FY25-27.
JPMorgan’s Perspective
JPMorgan echoed bullish sentiments with an “Overweight” recommendation and a higher target price of ₹54. The firm identified key drivers, including:
- Increasing outsourcing trends in the US healthcare sector.
- A robust 50% earnings CAGR over FY24-27.
Why is Sagility India Stock Surging?
- Healthcare BPM Leadership: Sagility’s specialization in the growing healthcare BPM sector positions it for sustained market share gains.
- Strong Financial Outlook: Analysts foresee significant growth in EBIT, PAT, and revenue metrics.
- Secular Growth Tailwinds: Increasing reliance on outsourcing in the US healthcare market is a major tailwind.
- Global Recognition: Positive coverage by Jefferies and JPMorgan boosts investor confidence.
Key Data
| Metric | Performance/Projection |
|---|---|
| Current Price (Dec 24) | ₹48.91 |
| December Gains | 32% |
| Jefferies Target Price | ₹52 |
| JPMorgan Target Price | ₹54 |
| Revenue CAGR (FY25-27) | 12% |
| Earnings CAGR (FY25-27) | 40%-50% |
| All-Time High | ₹48.91 |
Conclusion
Sagility India is rapidly emerging as a key player in the healthcare BPM space, with significant growth opportunities highlighted by top global financial firms. The combination of robust earnings projections, market share potential, and secular industry tailwinds positions the stock for further upside in the coming years.
Disclaimer
The above content is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.
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