ICICI Securities initiated coverage on Sagility India Ltd., with the US health-tech player ticking the right boxes, including steady growth and earnings per share visibility.
The healthcare service provider firm has a payer-led portfolio, which accounted for 89.2% revenue in the second quarter of financial year 2025.
Key USPs that complement the existing healthcare industry tailwinds include the top 10 clients comprising top five US healthcare payers. The company also has a wide gamut of offerings, and expanding client reach led by refreshed sales strategy, according to the brokerage.
With complete debt repayment by financial year 2027 and acquisition earnouts by financial year 2026, Sagility would be on an unhindered path of EPS growth, the brokerage said in its note.
ICICI Securities expects revenue of 13.7%, and the adjusted Ebitda to be 14.5%. Expected CAGR is 52.5% over FY24-27E, according to the brokerage.
It has initiated coverage with ‘add’ and a target price of Rs 55. The brokerage sees the 12-month price to earnings at 26 times.
