Shares of Sagility India today rallied 5% in early trade to hit its upper circuit and a fresh all-time high of Rs 46.09 on the BSE as global brokerage firm Jefferies initiated coverage on the stock with a ‘buy’ rating and a target price of Rs 52. The target indicates an upside potential of 18% for the stock from its previous closing price.The foreign brokerage firm highlights Sagility’s strong positioning to deliver consistent double-digit revenue growth in the coming years.“Sagility is poised to benefit from the normalization of depreciation and amortization (D&A) costs and deleveraging, which are expected to drive earnings per share (EPS) growth,” said Jefferies in its note.The firm has projected a robust performance for Sagility over FY25-27, anticipating a compound annual growth rate (CAGR) of 12% in revenue and 40% in profit after tax (PAT).Jefferies also noted that the normalization of D&A costs and reduced leverage will significantly contribute to operational efficiency. This, coupled with a strong outlook for earnings growth, is expected to sustain Sagility's current price-to-earnings (PE) multiples.Also read: International Gemmological Institute IPO listing today. GMP hints at solid gainsWith its focus on the US healthcare sector and strategic initiatives to enhance profitability, the global brokerage firm believes that Sagility is well-positioned to capitalize on growth opportunities in the BPM industry.In the last one month, the shares of Sagility India have gained 57.6% and have increased by 16.3% and 15.2% in the last 2 weeks and 1 week respectively, according to the BSE analytics.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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