Analysts Are Updating Their Sagility Limited (NSE:SAGILITY) Estimates After Its Second-Quarter Results

Sagility Limited (NSE:SAGILITY) shareholders are probably feeling a little disappointed, since its shares fell 2.5% to ₹44.18 in the week after its latest second-quarter results. Results were roughly in line with estimates, with revenues of ₹20b and statutory earnings per share of ₹1.98. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sagility after the latest results.

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Following the latest results, Sagility's 13 analysts are now forecasting revenues of ₹87.2b in 2027. This would be a solid 9.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 14% to ₹2.50. In the lead-up to this report, the analysts had been modelling revenues of ₹87.0b and earnings per share (EPS) of ₹2.32 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Sagility

The consensus price target was unchanged at ₹58.08, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Sagility analyst has a price target of ₹65.00 per share, while the most pessimistic values it at ₹50.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sagility's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Sagility's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. So it's pretty clear that, while Sagility's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sagility following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Sagility going out to 2029, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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