Target: ₹60
CMP: ₹46.48
Sagility India, a healthcare-focused Business Process Management (BPM) and digital transformation company, boasts over 25 years of experience, servicing 77 active clients that include prominent U.S. payers, providers, pharmacy benefit managers (PBMs), and technology platforms.
In the first quarter of FY26, Sagility onboarded four new clients, which include a $12 billion regional Blues plan, a $5 billion specialty health system, a pharmacy benefit manager, and a technology Third-Party Administrator (TPA) firm. The company also expanded its business with 18 existing clients, maintaining long-term partnerships that span 10 to 25 years. New business and expansion won during this period amounted to a potential steady state Annual Contract Value (ACV) of $32 million.
Sagility is making significant investments in artificial intelligence and automation, currently deploying 18 live AI use cases such as Nurse Assist, Appeals Assist, and Contract Validation, with an additional 15 use cases in development. The company has enhanced its capabilities through acquisitions of BroadPath, BirchAI, and DCI.
We assign a Buy rating to Sagility with a target price of ₹60, based on a 26× price-to-earnings (P/E) multiple on estimated earnings per share (EPS) for FY27. This assessment underscores the company’s extensive healthcare domain expertise, long-standing client relationships, improving profitability, robust cash generation, and a strategic emphasis on AI-led transformation—factors that collectively support the prospect of sustained growth and shareholder value creation.
However, Sagility’s key risks include high client concentration, potential changes in U.S. healthcare regulations, elevated employee attrition, currency fluctuations, and a goodwill-heavy balance sheet resulting from acquisitions, all of which may impact growth and profitability.
Published on September 18, 2025.
