Sagility India shares soar another 10% as post-earnings rally extends to second day

Stock Market Today: Shares of Sagility India gained 10% for the second consecutive session on Wednesday, November 27, reaching a new all-time high of ₹34.69 per share. The recent sharp spike in the stock is due to the company’s strong financial results for the quarter ended September 2024, reported on Monday.

The company posted a massive 236% year-on-year (YoY) increase in Q2FY25 profit after tax (PAT), reaching ₹117.34 crore, compared to ₹34.96 crore in the same quarter last year.

Revenue for the quarter rose 21% YoY to ₹1,325 crore, up from ₹1,094.10 crore in Q2FY24. The company’s EBITDA also grew by 20.3% YoY, reaching ₹316.5 crore. However, the EBITDA margin decreased slightly to 23.9% in Q2FY25, down from 24.1% in Q2FY24.

As of September 30, 2024, Sagility had 45 active clients, with its client Net Promoter Score (NPS) improving to 53. The company also expanded its global footprint, operating in five countries and managing 32 delivery centres, as per the company's Q2FY25 earnings report.

Commenting on the results announcement, Ramesh Gopalan, Managing Director and Group CEO, said, “Sagility occupies a critical position in the US healthcare services space, supported by domain expertise and long-standing client relationships. Over the years, we have built tech-enabled solutions and services to deliver best-in-class business outcomes for payers and providers, resulting in continued accretion to the size and duration of our client engagements."

"Our runway for growth is long and is backed by a combination of favorable industry dynamics, our strategic investments in advanced technologies, including AI, and a strong orientation towards creating value for our clients," he added.

Stock up 28% in 8 sessions

The shares of Sagility India had a weak debut on Dalal Street on November 12, listing 2.3% below the IPO price of ₹30 per share. The stock continued to struggle for the next eight sessions before gaining momentum following the announcement of strong financial results.

At the current price, the stock has risen by 28% from its recent low of ₹27 per share, reached on November 13.

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