SAGILITY - Investment Analysis

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

Investment Rating: 3.7

📊 Fundamental & Technical Analysis of SAGILITY

Sagility India Ltd is a healthcare-focused BPM (Business Process Management) company with global operations. While it shows signs of growth, its valuation and profitability metrics suggest a cautious approach for long-term investors.

🔍 Key Metrics Breakdown

Metric Value Interpretation

P/E Ratio 37.6 Above industry average (31.8) — expensive

PEG Ratio 0.13 Indicates low but positive growth

ROE / ROCE 7.3% / 9.48% Below ideal for long-term compounding

Dividend Yield 0.00% No passive income — growth-only play

Debt-to-Equity 0.17 Low leverage, financially stable

EPS ₹1.15 Weak earnings base

Book Value ₹17.8 P/B ~2.4 — fairly valued

FII/DII Holding +2.6% / +6.6% Strong institutional interest

MACD / RSI 0.46 / 50.8 Neutral momentum

📈 Ideal Entry Price Zone

Accumulation Zone: ₹36–₹40

Near recent support and OFS floor price (₹38)

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Offers better margin of safety and aligns with DMA200 (₹40.6)

🧭 If You Already Hold SAGILITY

🕒 Holding Strategy

Time Horizon: 2–3 years minimum

Monitor

ROE improvement above 10%

PEG ratio trending toward 0.5+

Institutional buying trends

EBITDA margin guidance (24–25%)

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🚪 Exit Strategy

Partial Exit: If price crosses ₹60–₹65 without earnings support

Full Exit: If ROE stagnates below 8% or PEG turns negative

Re-entry: On dips near ₹38–₹40 with improving profitability

🧠 Final Take

Sagility is not a high-conviction long-term compounder yet, but it’s a reasonable mid-cap growth candidate with improving fundamentals. Its recent promoter stake sale and strong Q1 results suggest short-term volatility, but long-term potential if execution continues.

Would you like a peer comparison with CMS Info Systems or Indiamart to evaluate alternatives in the BPM or tech-enabled services space?

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