Shares of Sagility India hit fresh high and traded at its upper circuit on bourses after Jefferies initiated coverage on the stock.
Shares of Sagility India Ltd had surged over 60 per cent from their IPO price of ₹30. Global brokerage firm Jefferies had initiated coverage on the stock on Friday. The brokerage had given a ‘Buy’ recommendation with a price target of ₹52 per share. Jefferies’ price target implied a potential upside of 18 per cent from Thursday’s closing price.
According to the report, the brokerage expected the company to deliver a compound annual growth rate (CAGR) of 12 per cent in revenue and 40 per cent in profit over FY25-27, supporting a favorable earnings growth outlook and sustaining current price-to-earnings (P/E) multiples.
Furthermore, Jefferies also highlighted several key factors that had driven Sagility’s growth. The company had been well-positioned to sustain double-digit revenue growth, while the normalisation of depreciation and amortization (D&A) costs, along with efforts to reduce debt, had been expected to boost earnings per share (EPS).
Shares were locked in the upper circuit on the NSE and BSE at ₹46.09 each, higher by 5 per cent as at 11.45 am.
