SAGILITY - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.6

📊 Sagility shows strong momentum and improving profitability, but low return metrics and high valuation temper long-term conviction.

📈 Positive

• Low Leverage: Debt-to-equity ratio of 0.09 reflects a conservative capital structure.
• Strong Quarterly Growth: PAT rose from ₹96.7 Cr. to ₹111 Cr., a 15% sequential increase.
• Momentum Indicators: RSI at 80.8 and MACD at 1.73 suggest bullish sentiment.
• Volume Surge: Trading volume significantly exceeds weekly average, indicating strong investor interest.
• PEG Ratio: 0.20 implies reasonable valuation relative to growth.

⚠️ Limitation

• High Valuation: P/E of 61.6 is nearly double the industry average of 33.1.
• Weak Return Metrics: ROCE at 4.37% and ROE at 2.88% suggest inefficient capital use.
• Low EPS: ₹0.85 may not justify current price levels.
• Overbought RSI: 80.8 indicates potential for short-term correction.

📉 Company Negative News

• Decline in FII holdings by 0.40% may signal cautious foreign sentiment.
• Valuation concerns raised due to high P/E and low return ratios.

📈 Company Positive News

• Q2FY26 net profit more than doubled YoY to ₹251 Cr.; revenue up 25.2% YoY

  Zee Business

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• All seven analysts covering the stock have issued “buy” ratings

  CNBCTV18

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• Brokerages like IIFL and Jefferies raised price targets to ₹70 and ₹62 respectively

  CNBCTV18

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• Dividend announced post Q2 results, boosting investor sentiment

  Zee Business

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🏭 Industry

• Healthcare BPO sector is growing due to global demand for cost-efficient solutions

  Market In India

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• Sagility serves U.S. healthcare clients exclusively, offering domain specialization

  moneymintidea.com

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• Industry P/E of 33.1 suggests Sagility trades at a premium.

🧾 Conclusion

• Entry Zone: ₹45–₹48 could be a better accumulation range post correction.
• Long-Term View: Hold with caution; monitor ROE/ROCE improvement and valuation compression.
• Momentum Play: Short-term traders may benefit from current bullish trend, but long-term investors should await better fundamentals.

Sources

CNBCTV18

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