SAGILITY - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📉 Current Price: ₹51.6

📊 Optimal Entry Price: ₹49.5–50.5 (minor pullback zone)

📈 Suggested Exit (if holding): ₹57–60 (near 52-week high and resistance)

🔷 Positive

• 🚀 Strong Q2 Performance: PAT rose to ₹251 Cr YoY, EBITDA margin improved to 25%

  Zee Business

• 📈 Technical Strength: Price above both 50 DMA (₹46.4) and 200 DMA (₹43.1)
• 📊 MACD Positive: Bullish crossover supports momentum
• 📉 Low Debt: Debt-to-equity ratio of 0.09 indicates strong financial health
• 📈 PEG Ratio: 0.20 suggests reasonable valuation relative to growth

⚠️ Limitation

• 📉 High P/E: 60.5 vs industry average of 34.0 implies overvaluation
• 📉 Weak ROCE & ROE: ROCE at 4.37% and ROE at 2.88% are below industry norms
• 📉 RSI at 64.7: Approaching overbought zone, caution for fresh entry
• 📉 Falling Volume: Current volume is significantly below 1-week average

🚫 Company Negative News

• 📉 FII Selling: Foreign institutional holding declined by 0.40%

✅ Company Positive News

• 📈 Q2 PAT Doubled YoY: Net profit jumped from ₹117 Cr to ₹251 Cr

  Zee Business

• 💰 Dividend Announced: Boosts investor sentiment

  Zee Business

• 📈 Raised Guidance: FY26 revenue and margin targets upgraded

  CNBCTV18

• 📊 Analyst Consensus: All 7 analysts rate it a “Buy” with targets up to ₹70

  CNBCTV18

🏭 Industry

• 💼 Business Services Sector: Strong demand for digital transformation and outsourcing
• 📈 Healthy Deal Wins: Sagility’s growth outlook supported by consistent new contracts

  CNBCTV18

🧾 Conclusion

Sagility is a strong swing trade candidate with bullish technicals and robust earnings momentum. Despite valuation concerns, its low debt, improving margins, and analyst optimism support upside potential. Entry near ₹50 offers a favorable setup, while exit near ₹57–60 aligns with resistance and recent highs. RSI suggests waiting for a minor dip before entering.

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