Sagility Share: Storm surge in small cap stocks today, also boom in brokerage

New Delhi. Shares of Segility India, which entered the stock market last month, today hit the upper circuit and hit an all-time high. In the last one month, this stock has given 70% profit to the investors. Brokerage firm Jefferies has initiated coverage on shares of Segility India and has given it an ‘overweight’ rating. The share opened at Rs 47.90 on the NSE today, up from its yesterday’s closing price of Rs 46.60. Shortly after the open, it hit the upper circuit of five percent and the share touched a high of Rs 48.93.

Segility India’s share was listed on the stock exchange on November 12 at Rs 31.06. The share was issued to IPO investors at a price of Rs.30. Segility India’s ₹2,106.60 crore IPO was open for subscription from November 5-7. The IPO received good response from investors and was subscribed 3.20 times overall. The issue was an offer for sale in its entirety and no new shares were issued. After listing on November 12, it fell to a record low of Rs 27.02 the next day, November 13.

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Jefferies gave it a buy rating.
Jefferies, a global brokerage firm, has given a buy recommendation on Segility India shares and set a target price of Rs 52. The brokerage says the company has a strong presence in the US healthcare sector. Between fiscal 2025 and fiscal 2027, the company’s revenue could grow at a compound growth rate (CAGR) of 12 percent annually and net profit by 40 percent. Strong performance and financial improvement will help Sagility India maintain values, Jefferies said.

In the September quarter, the company posted a 236% increase in net profit on a year-on-year basis. Its overall net profit stood at Rs 117 crore in the quarter under review. Revenue rose 21.1 percent to Rs 1,325 crore and EBITDA rose 28.2 percent to Rs 300 crore. EBITDA margin was 22.6% compared to 21.4%. For the full fiscal year 2024, Segility’s profit rose 59% to Rs 228.3 crore, supported by lower finance costs and higher other income. However, operating margins remained under pressure.

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