Motilal Oswal Sets Target Price of Rs 58 for Sagility

Sagility Research Report: Motilal Oswal Analyst Insights

Key Highlights

Sagility's Investor Day 2026 provided insight into the company's growth strategies, focusing on four key areas:

1. Cost transformation driven by demand from US payers, which is expected to contribute to the company's growth.
2. Capability-led differentiation, including the strategic use of Artificial Intelligence (AI) to enhance service offerings.
3. Exiting client mining, new Statements of Work (SOW), and expansion initiatives to drive revenue growth.
4. Compliance-driven initiatives, aimed at enhancing the company's operational efficiency.

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Growth Projections

We expect Sagility to achieve a low- to mid-teens growth rate, driven by factors such as:

• Increased volume of work from top clients
• New logo additions
• Cross-selling opportunities
• Synergy from the acquisition of Broadpath

These factors are expected to drive the company's revenue, EBIT, and PAT CAGR to 20%, 28%, and 23% respectively, over FY25-28.

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Outlook and Recommendation

Based on our analysis, we reiterate our BUY rating on the stock with a Target Price (TP) of INR58, based on 20x FY28E EPS. We continue to view Sagility as a structural beneficiary of increasing outsourcing by US payers.