As international brokerage firm Jefferies began covering Sagility India with a “buy” rating and a target price of Rs 52, the company’s shares surged 5% in early trading today to reach its upper circuit and a new all-time high of Rs 46.09 on the BSE.
The objective suggests that the stock might rise by 18% from its last closing price.
The international brokerage firm emphasizes how well-positioned Sagility is to generate steady double-digit revenue growth over the next several years.
鈥淪agility is poised to benefit from the normalization of depreciation and amortization (D&A) costs and deleveraging, which are expected to drive earnings per share (EPS) growth,鈥� said Jefferies in its note.
The corporation has forecast a strong performance for Sagility for FY25鈥�27, predicting a 40% profit after tax (PAT) and a 12% compound annual growth rate (CAGR) in revenue.
Additionally, Jefferies pointed out that lowering leverage and normalizing D&A expenses will greatly improve operational effectiveness. Sagility’s existing price-to-earnings (PE) multiples should be maintained as a result of this and a promising forecast for earnings growth.
The international brokerage firm thinks Sagility is in a good position to take advantage of growth prospects in the BPM sector because of its emphasis on the US healthcare market and strategic efforts to increase profitability.
According to BSE data, Sagility India’s shares have risen 57.6% over the past month and 16.3% and 15.2% over the last two and one weeks, respectively.
