Shares of IT-enabled services company Sagility India (SIL) which debuted on the stock market in November this year hit a new 52-week high in early trade on Tuesday. At last count, the scrip was locked in a 5 percent higher round at Rs 48.93 per share on the NSE.
The buying action on the stock was initiated after global firm JP Morgan initiated its listing on the stock with an ‘overweight’ rating and a target price of Rs 54. The set target shows about 16 percent gains from the previous period.
The brokerage is forecasting an 18 percent earnings adjusted CAGR for the company over FY24-27E as it sees headwinds from increasing outsourcing in US healthcare. Also, the brokerage is of the opinion that deep domain expertise and customer relationships should drive the company’s growing revenue.
Also, SIL commands structurally high Earnings Before Interest and Tax (EBIT) margins.
However, the key risks cited by the brokerage are high customer concentration, acquisitions from top customers, changes in regulations affecting the US healthcare industry and the potential TAM risk from an aggressive GenAI takeover.
The lowest price of Sagility India shares
As for the issue price of Rs 30, the stock is up 63 percent for the day.
About Sagility India
The small company provides technology-enabled business solutions to the US healthcare industry, including claims management and revenue cycle management.
