SAGILITY - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.1

📊 Core Financial Analysis

Profitability & Returns

PAT Decline: ₹183 Cr vs ₹217 Cr — ~15.7% drop, indicating short-term margin compression.

EPS: ₹1.15 — very low, especially for a ₹43 stock.

ROE (7.3%) & ROCE (9.48%) — below average, suggesting weak capital efficiency.

Debt & Leverage

Debt-to-Equity: 0.17 — very low, which is a positive for financial stability.

No dividend yield — implies retention of earnings, possibly for reinvestment or debt servicing.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 37.6 High vs industry PE of 31.8 — slightly overvalued

P/B Ratio ~2.44 Reasonable, but not cheap given low ROE

PEG Ratio 0.13 Indicates some growth potential, but needs earnings consistency

Intrinsic Value ~₹35–₹38 Based on earnings and growth, current price is slightly above fair value

🏢 Business Model & Competitive Edge

Operates in IT services and BPM (Business Process Management) — a competitive, margin-sensitive sector.

Likely benefits from digital transformation demand, but faces pricing pressure and high employee costs.

Competitive advantage is scale and client relationships, but not strongly differentiated.

📉 Technical & Sentiment Indicators

RSI: 50.8 — neutral, no strong momentum.

MACD: 0.46 — mildly bullish crossover.

Volume below average — waning interest.

DMA 50 ≈ Current Price — consolidation zone.

FII & DII holdings up — positive institutional sentiment.

🧠 Investment Guidance

🔍 Entry Zone (If Undervalued)

Ideal Buy Range: ₹35–₹38

Closer to intrinsic value and 200 DMA.

Offers better risk-reward balance.

📈 Long-Term Holding View

Hold only if bought below ₹38.

Watch for consistent earnings growth and margin improvement.

ROE/ROCE need to improve to justify long-term conviction.

Would you like a side-by-side comparison with peers like Firstsource or WNS to assess sector positioning?

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