SAGILITY - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | SAGILITY | Market Cap | 17,503 Cr. | Current Price | 37.4 ₹ | High / Low | 57.9 ₹ |
| Stock P/E | 45.7 | Book Value | 22.1 ₹ | Dividend Yield | 0.13 % | ROCE | 4.37 % |
| ROE | 2.88 % | Face Value | 10.0 ₹ | DMA 50 | 44.2 ₹ | DMA 200 | 45.6 ₹ |
| Chg in FII Hold | 4.66 % | Chg in DII Hold | 6.49 % | PAT Qtr | 93.4 Cr. | PAT Prev Qtr | 111 Cr. |
| RSI | 32.7 | MACD | -2.35 | Volume | 1,97,14,247 | Avg Vol 1Wk | 2,07,82,538 |
| Low price | 36.6 ₹ | High price | 57.9 ₹ | PEG Ratio | 0.15 | Debt to equity | 0.09 |
| 52w Index | 3.62 % | Qtr Profit Var | -15.2 % | EPS | 0.77 ₹ | Industry PE | 21.9 |
📊 SAGILITY trades at ₹37.4, close to its recent low of ₹36.6. Technical indicators (RSI 32.7, MACD -2.35, price below both 50DMA and 200DMA) show weak momentum. Fundamentals are weak with low ROE and ROCE, declining profits, and high P/E compared to industry. Despite strong institutional buying, this stock is a risky swing trade candidate.
💡 Optimal Entry Price: Around ₹36–37 (near support zone).
🔔 Exit Strategy if Holding: Consider exiting near ₹44–45 (around 50DMA resistance) unless momentum improves.
✅ Positive
- FII holdings increased by 4.66% and DII holdings by 6.49%, showing institutional confidence.
- Low debt-to-equity ratio of 0.09 ensures financial stability.
- PEG ratio of 0.15 suggests potential growth at current valuation.
⚠️ Limitation
- High P/E of 45.7 compared to industry PE of 21.9.
- Dividend yield is very low at 0.13%.
- Weak profitability: ROE 2.88%, ROCE 4.37%.
- EPS of only ₹0.77 indicates limited earnings power.
📉 Company Negative News
- Quarterly PAT fell from ₹111 Cr. to ₹93.4 Cr. (-15.2%).
- Weak technicals: RSI oversold, MACD negative.
- Price trading below both 50DMA and 200DMA.
📈 Company Positive News
- Strong institutional buying (FII and DII stake increases).
- Low debt enhances financial resilience.
🏭 Industry
- Industry PE at 21.9, much lower than SAGILITY’s valuation.
- IT services and outsourcing sector remains competitive with margin pressures.
- Global demand for outsourcing continues but profitability challenges persist.
🔎 Conclusion
SAGILITY is financially stable with strong institutional interest but weak profitability and technicals. It is a risky swing trade candidate, suitable only for aggressive traders entering near ₹36–37 with a target around ₹44–45. Risk management is critical due to declining profits and overvaluation.