Sagility India shares jump 5% to record 8th day of non-stop buying

Synopsis

Sagility India shares surged 5% on Thursday, reaching a fresh high of Rs 51.35, marking the 8th consecutive day of gains. The stock has risen 61% in the past month, while the Sensex has fallen nearly 2%. JPMorgan recently initiated coverage with an "Overweight" rating and a target price of Rs 54, highlighting the company’s strong position in the healthcare services sector.

Shares of Sagility India jumped another 5% on Thursday to hit a fresh high of Rs 51.35, rallying for the 8th consecutive day. The stock is now up 61% in the last month, while the Sensex has lost nearly 2% of its value.

Earlier in the week, global brokerage firm JPMorgan initiated coverage on Sagility with an "Overweight" rating and a target price of Rs 54.

JPMorgan highlighted Sagility's strong positioning in the niche healthcare services segment, primarily catering to non-discretionary spending, which provides a stable growth outlook even in uncertain market conditions.

JPMorgan emphasized that Sagility is well-positioned to benefit from secular tailwinds, particularly due to the increasing trend of outsourcing in the US healthcare sector. As healthcare providers look to reduce costs and enhance efficiency, Sagility’s offerings have become critical, solidifying its role as a dependable outsourcing partner.

The company’s deep domain expertise and longstanding client relationships further strengthen its competitive edge, enabling it to tap into high-margin areas such as data mining and analytics,” said the foreign brokerage firm in its report.

Also read | Sensex forecast to conquer fresh record high of 90,000 in 2025: ETMarkets Poll

The brokerage also highlighted Sagility’s financial strength, emphasizing its high structural EBIT margins, which ensure profitability as the company scales operations. Additionally, its focus on non-discretionary healthcare spending protects it from cyclical market fluctuations, providing stability in revenue and earnings. JPMorgan’s report projects a robust 50% compound annual growth rate (CAGR) in earnings over FY24-27, reinforcing its positive outlook for the stock.

Earlier last week, another global brokerage firm, Jefferies, initiated coverage on the stock with a ‘buy’ rating and a target price of Rs 52, highlighting Sagility’s strong positioning to deliver consistent double-digit revenue growth in the coming years.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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