Shares of Sagility India soared by 5% to hit the upper circuit of Rs 48.91 on the BSE after the global brokerage firm JPMorgan initiated coverage on the stock with an "Overweight" rating and a target price of Rs 54.The target price indicates a potential for 16% upside in the stock from its closing price on Monday.The brokerage highlighted Sagility's strong positioning in the niche healthcare services segment, catering largely to non-discretionary spending, which provides a stable growth outlook even in uncertain market conditions.JPMorgan emphasized that Sagility is well-placed to benefit from secular tailwinds, particularly due to the increasing trend of outsourcing in the US healthcare sector. As healthcare providers look to reduce costs and enhance efficiency, Sagility’s offerings have become critical, cementing its role as a dependable outsourcing partner. “The company’s deep domain expertise and longstanding client relationships further strengthen its competitive edge, enabling it to tap into high-margin areas such as data mining and analytics,” said the foreign brokerage firm in its note.The brokerage also highlighted Sagility’s financial strength, underscoring its high structural EBIT margins, which ensure profitability even as the company scales operations. Moreover, its focus on non-discretionary healthcare spending protects it from cyclical market fluctuations, offering stability in revenue and earnings.JPMorgan’s report projects a robust 50% compound annual growth rate (CAGR) in earnings over FY24-27, reinforcing its positive outlook for the stock.Also read: PG Electroplast shares rally 5% on partnership with Whirlpool to manufacture washing machinesEarlier in the last week, another global brokerage firm Jefferies initiated coverage on the stock with a ‘buy’ rating and a target price of Rs 52, highlighting Sagility’s strong positioning to deliver consistent double-digit revenue growth in the coming years.In the last one month, the shares of Sagility have gained 74.5% and 15.7% in the last 2 weeks.(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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