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Deven Choksey Research Report
Sagility India Ltd. will launch its initial public offering on Nov. 05 and the offer closes for subscription on Nov. 07. A leading tech-enabled healthcare specialist has fixed the price band in the range of Rs 28-30 per share.
The IPO of Sagility India comprises of entirely an offer-for-sale of Rs 70.22 crore equity shares, with no fresh issue component. The company aims to raise Rs 2,107 crore from the offer.
Outlook and Valuation
Sagility is a leading tech-enabled healthcare specialist, recognized as a “Leader” in Everest Group’s PEAK Matrix Assessment 2023. With a strong YoY growth rate of 12.7%, it outperforms major competitors like Accenture and Cognizant in particular healthcare industry. Sagility’s exclusive focus on the U.S. healthcare market and its expanding client base, which includes five of the top ten U.S. payers, highlight its market strength. Recent acquisitions, including BirchAI and Devlin Consulting, enhance its technological capabilities and payment integrity services, positioning it for continued growth.
The company’s comprehensive service offerings and strategic focus on healthcare make it a compelling investment opportunity for stakeholders seeking exposure in this resilient sector.
At the upper end of the price band, the company’s post-issue P/E based on annualized FY24 EPS stands at 56.6 times, which appears overvalued compared to its peers.
Despite Sagility India Ltd.'s strong growth prospects, strategic acquisitions, and leadership recognition, the unfavorable P/E ratio tempers the appeal of the investment. We recommend a ‘Neutral’ rating on the IPO of Sagility India.
Click on the attachment to read the full IPO report:
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