Sagility India share price hits 5% upper circuit for second straight session; stock jumps over 71% from IPO price

Sagility India share price was locked in at 5% upper circuit to a new high of ₹51.35 apiece on Thursday, extending its gaining streak for the eight straight session. Sagility India stock price has jumped over 29% in the past eight sessions amid heavy buying.

The recently listed Sagility India shares have rallied more than 71% from their issue price and over 65% from its listing price.

Sagility India shares made their stock market debut on November 12, listing at ₹31.06 on the BSE and NSE, a 3.5% premium over the issue price of ₹30.

Brokerages bullish on Sagility India

The recent rally in Sagility India shares came after last week global brokerage firm Jefferies initiated coverage on the stock with a ‘Buy’ rating and a target price of ₹52 per share.

Jefferies observed that Sagility India is a leading healthcare-focused BPM (business process management) firm with deep domain expertise and end-to-end service offerings that position it well to gain market share.

It expects Sagility's EBIT margins to nearly double over FY24-27 to 16.5% due to the normalisation of D&A (depreciation and amortisation) costs, resulting in 31% CAGR in EBIT over FY25-27.

Further, deleveraging of the balance sheet will lower interest costs over FY25-27, which in turn will spur earnings growth further to 40% CAGR over FY25-27 — the highest amongst its peer set, Jefferies said.

Another foreign brokerage firm, JPMorgan also shared its bullish view on Sagility India stock, initiating coverage with an ‘overweight’ view, and a target price of ₹54 per share. JPMorgan noted a secular tailwind for Sagility India shares from increasing outsourcing in the US healthcare industry, reports said.

JPMorgan sees a 50% earnings CAGR over FY24-27 for Sagility India.

Sagility India IPO

The initial public offering (IPO) of Sagility India was open from November 5 to 7. The ₹2,106.60-crore worth Sagility India IPO received 3.2 times bids. The issue was entirely an offer for sale of 70.22 crore equity shares. Sagility India IPO price band was set at ₹28 to ₹30 per share. 

At 11:15 AM, Sagility India shares were still locked in at 5% upper circuit at ₹51.35 apiece on the BSE, commanding a market capitalisation of more than ₹24,000 crore.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.