Axis Capital Initiates Coverage On #Sagility India Limited With BUY For TP : 60

"UnderAppreciated Healthcare BPM Champ"

Axis Capital Has Valued Sagility At 17× FY27E EV/EBITDA

Important Thing Here To Note Is That The EBITDA Margin Projected is 23.2% But Management Has Clearly Guided Multiple Times That Company Will Comfortably Maintain 24-25% EBITDA Margin And Revenue Growth is Projected At 9.5% Which Seems Highly Conservative 

The Company is Poised To Deliver 10.5-12% USD Topline Growth And A Bit More In Rupee Terms And This All Is Based On Organic Growth,
The Company Will Generate Around 1150 Cr Free Cash From Next FY, Hence Inorganic Growth is Always On The Platter

If I Just Take 24.5% EBITDA Margin At Conservative Topline Growth
(Without Considering Any Inorganic Growth)
The Numbers Will Look Like 

FY27E
Revenue : 7,240 Cr
EBITDA : 1,774 Cr

Hence The Target EV Comes At 30,200 Cr

Therefore The M.Cap Comes At 31,800 Cr [The Cash Of Roughly 2200 Cr (FY24+FY25) & Adding Roughly 600 Cr Debt]

The TP Comes At 67, Implying An Upside Of 28.5%