SAGILITY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.5
| Stock Code | SAGILITY | Market Cap | 19,540 Cr. | Current Price | 41.7 ₹ | High / Low | 57.9 ₹ |
| Stock P/E | 51.0 | Book Value | 22.1 ₹ | Dividend Yield | 0.12 % | ROCE | 4.37 % |
| ROE | 2.88 % | Face Value | 10.0 ₹ | DMA 50 | 42.5 ₹ | DMA 200 | 44.7 ₹ |
| Chg in FII Hold | -0.23 % | Chg in DII Hold | 0.92 % | PAT Qtr | 93.4 Cr. | PAT Prev Qtr | 111 Cr. |
| RSI | 50.0 | MACD | 0.07 | Volume | 1,25,71,897 | Avg Vol 1Wk | 1,08,47,502 |
| Low price | 35.8 ₹ | High price | 57.9 ₹ | PEG Ratio | 0.17 | Debt to equity | 0.09 |
| 52w Index | 26.8 % | Qtr Profit Var | -15.2 % | EPS | 0.77 ₹ | Industry PE | 26.0 |
📊 SAGILITY reflects weak fundamentals with very low ROE (2.88%) and ROCE (4.37%), indicating poor efficiency in generating returns. Despite low leverage (Debt-to-equity: 0.09), profitability remains under pressure with declining PAT (-15.2% QoQ). Valuation is expensive with a P/E of 51.0 compared to industry PE of 26.0, though PEG ratio (0.17) suggests some relative growth potential. Current price ₹41.7 is near its 50 DMA (₹42.5), making ₹36–40 an ideal entry zone for short-term traders. Long-term investors should remain cautious unless profitability metrics improve.
💡 Holding strategy: Short-to-medium horizon (1–2 years) is advisable if price sustains above ₹45. Exit strategy: partial profit booking near ₹48–50 or full exit if earnings continue to decline or ROE remains below 5%.
Positive
- 📈 Debt-to-equity ratio of 0.09 indicates very low leverage risk.
- 💰 DII holding increased (+0.92%), showing domestic institutional support.
- 📊 PEG ratio of 0.17 suggests fair valuation relative to growth potential.
Limitation
- ⚠️ ROCE at 4.37% and ROE at 2.88% are very weak for long-term investment.
- 📉 Dividend yield of 0.12% offers negligible passive income.
- 📊 High P/E of 51 compared to industry average of 26 indicates overvaluation.
Company Negative News
- 📉 PAT declined from ₹111 Cr. to ₹93.4 Cr. QoQ, showing earnings pressure.
- 📊 FII holding decreased (-0.23%), reflecting reduced foreign investor confidence.
Company Positive News
- 📈 Strong trading volumes (1.25 Cr.) above weekly average, indicating market activity.
- 📊 Technicals: RSI at 50 and MACD slightly positive, showing neutral momentum.
Industry
- 🏭 Industry PE at 26.0 is much lower than SAGILITY’s 51.0, suggesting relative overvaluation.
- 📉 IT/BPO sector faces margin pressures due to rising costs and global competition.
Conclusion
⚖️ SAGILITY is a weak candidate for long-term investment due to poor ROE and ROCE despite low debt. Ideal entry is near ₹36–40 for short-term traders. Long-term investors should be cautious, as profitability metrics are not supportive. Exit near ₹48–50 or on further deterioration of earnings.
This HTML report captures SAGILITY’s weak fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this by benchmarking SAGILITY against peers like Infosys, TCS, or Wipro to highlight stronger alternatives in the IT/BPO sector?