SAGILITY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | SAGILITY | Market Cap | 19,296 Cr. | Current Price | 41.2 ₹ | High / Low | 57.9 ₹ |
| Stock P/E | 51.3 | Book Value | 22.3 ₹ | Dividend Yield | 0.12 % | ROCE | 5.03 % |
| ROE | 3.65 % | Face Value | 10.0 ₹ | DMA 50 | 42.5 ₹ | DMA 200 | 44.4 ₹ |
| Chg in FII Hold | -0.23 % | Chg in DII Hold | 0.92 % | PAT Qtr | 73.9 Cr. | PAT Prev Qtr | 93.4 Cr. |
| RSI | 44.6 | MACD | -0.03 | Volume | 1,15,19,714 | Avg Vol 1Wk | 1,73,41,482 |
| Low price | 35.8 ₹ | High price | 57.9 ₹ | PEG Ratio | 0.43 | Debt to equity | 0.08 |
| 52w Index | 24.6 % | Qtr Profit Var | -9.60 % | EPS | 0.75 ₹ | Industry PE | 26.8 |
📊 Financials: SAGILITY has a market cap of ₹19,296 Cr. Quarterly PAT fell from ₹93.4 Cr. to ₹73.9 Cr. (-9.6% variation), showing declining profitability. ROE at 3.65% and ROCE at 5.03% are weak, reflecting poor return metrics. Debt-to-equity ratio of 0.08 indicates low leverage, but overall efficiency remains subdued. EPS at ₹0.75 is modest, limiting earnings visibility.
💹 Valuation: Current P/E of 51.3 is nearly double the industry average of 26.8, suggesting overvaluation. P/B ratio (~1.85) is moderate compared to book value ₹22.3. PEG ratio at 0.43 indicates some growth potential, but earnings remain weak. Intrinsic value appears lower than CMP ₹41.2, leaving limited upside.
🏦 Business Model: SAGILITY operates in IT-enabled services and outsourcing, focusing on healthcare and business process management. Its competitive advantage lies in niche specialization and client relationships. However, low profitability and high valuation reduce overall attractiveness.
📉 Entry Zone: RSI at 44.6 suggests neutral momentum, while MACD at -0.03 indicates flat trend. A potential entry zone could be around ₹36–₹38 for accumulation. Long-term holding requires caution, given weak fundamentals and stretched valuations.
Positive
- 📈 Debt-to-equity ratio at 0.08 (low leverage).
- 🌐 Niche focus in healthcare outsourcing.
- 📊 Increase in DII holding (+0.92%).
Limitation
- ⚠️ Weak ROE (3.65%) and ROCE (5.03%).
- 📉 Declining quarterly PAT (-9.6%).
- 🔄 High P/E (51.3) vs industry average (26.8).
Company Negative News
- 📉 Decline in FII holding (-0.23%).
- ⚠️ Stock trading below DMA 200 (44.4).
Company Positive News
- 📊 Strong DII support with +0.92% increase.
- 📈 Stable volume activity above average levels.
Industry
- 💹 Industry PE at 26.8, much lower than SAGILITY’s 51.3.
- 🌐 IT-enabled services sector growing steadily.
- 🏦 Competition from global outsourcing firms remains intense.
Conclusion
⚖️ SAGILITY is a niche outsourcing player with low leverage and sectoral focus, but weak profitability and high valuation limit attractiveness. Entry may be considered near ₹36–₹38 for long-term investors, though caution is advised due to declining earnings and stretched multiples.
For a broader view, you could explore SAGILITY peer comparison or a technical chart analysis to complement this fundamental assessment.