Stock under Rs 50: This recent D-Street debutant hits 5% upper circuit

Shares of IT enabled services firm Sagility India (SIL) that made its stock market debut in November this year marked their fresh 52-week high in early trade on Tuesday. At the last count, the scrip was locked in 5 per cent upper circuit at Rs 48.93 per share on the NSE.

The buying action in the stock was triggered after global brokerage JP Morgan initiated its coverage on the stock with an 'overweight' rating and a target price of Rs 54. The set target implies potential gains of 16 per cent from the previous close.

The brokerage forecasts 18 per cent adjusted earnings CAGR for the company over FY24-27E as it sees secular tailwinds from increasing outsourcing in the US healthcare. Also, the brokerage is of the view that deep domain expertise and client relationships should drive increased revenue for the company.

Also, SIL commands high structural Earnings Before Interest and Taxes (EBIT) margins.

Nonetheless, the key risks cited by the brokerage are high client concentration, in-sourcing from top clients, changes in regulations impacting US healthcare industry & potential TAM risk from aggressive GenAI adoption.

Sagility India share price performance

As against the issue price of Rs 30, the stock at the day's high has climbed over 63 per cent.

About Sagility India

The smallcap company provides technology-enabled business solutions and services to the U.S. healthcare industry, including claims management and revenue cycle management.