Sagility India Share Price Falls After Hitting Highest Since Listing, Recovers Soon

Sagility India's share price snapped its five-session rally and fell after it hit its highest level since listing. The stock has gained 53% since the day it made its debut last month.

On Friday, Jefferies had initiated its coverage on the stock with a 'buy' rating and a target of Rs 52, implying a 19% upside. According to the brokerage, Sagility is a leading business process management firm focused on US Healthcare and is well positioned to deliver double digit growth.

The brokerage had said that its EPS growth is likely to be spurred by normalisation of depreciation & amortisation costs and deleveraging to spur EPS growth. The company offers better growth than peers at the same valuation multiple.

In the September quarter, the company reported a net profit jump of 236% year-on-year. Its consolidated net profit for the reporting quarter came in at Rs 117 crore, revenue rose 21.1% to Rs 1,325 crore and Ebitda was 28.2% higher at Rs 300 crore. Ebitda margin came in at 22.6% as against 21.4%.

While it fell in early trade, the scrip turned positive, rising as much as 4.05% to Rs 47 apiece, the highest level.

The relative strength index was at 74, indicating that the stock may be overbought.

One analyst tracking the company has a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 16.1%.