Sagility India shares hit upper circuit after Jefferies initiates coverage with ‘Buy’ rating

The newly listed Sagility India’s shares hit the upper circuit at Rs 46.09 after the brokerage Jefferies India initiated coverage with a ‘Buy’ rating on the stock. The brokerage firm has kept a target price of Rs 52 on the stock. It said that the company is focused on the US healthcare industry.

Jefferies India said that the company is well-positioned to deliver the double-digit revenue growth going forward. Along with, the normalisation of depreciation and amortisation (D&A) with a spur in EPS growth. Also, the brokerage sees the costs of D&A to normalise.

The company is expected to deliver 12% revenue growth year-on-year over the next two years and a net profit growth of 40%. 

Adding to that, it said that the company’s superior earnings growth outlook is likely to sustain current PE multiples. 

Sagility India IPO details

The shares of Sagility India hit the D-Street for the first time at Rs 31.06, a premium of 3.53% on the National Stock Exchange. Sagility India IPO was open for subscription from November 05 and closed on November 07. The company raised Rs 2,106 crore via an offer for sale of 70.22 crore shares. The company IPO price band was fixed between Rs 28 – 30 per equity share. The allotment of shares was finalised on November 08 by the registrar of the company. 

Sagility India’s performance in Q2

The company reported a 30.5% YoY jump in its adjusted Q2 net profit at Rs 163.6 crore for the second quarter of FY25. Its revenue stood at Rs 1,325 crore, a growth of 21.1% on year. In the first half of FY25, the company’s adjusted net profit came in at Rs 308.3 crore, a 15% YoY rise. Its revenues stood at Rs 2,548.4 crore, an increase of 15.3% YoY.

Sagility India Vs Nifty 50

The stock has given a return of almost 13% in the last five trading days. It gave a return of 63% in the previous one month. While it has given a return of 57% from its listing day. To compare, the benchmark index, Nifty 50 has fallen more than 3% in the last five trading sessions. However, the index has risen 2.4% in the past one month. 

About Sagility India 

Sagility India (SIL), is a technology-enabled, pure-play healthcare-focused solutions and services provider to payers (U.S. health insurance companies, which finance and reimburse the cost of health services) and providers (primarily hospitals, physicians, and diagnostic and medical devices companies).