MoneyWorks4Me

Check Before You Invest : Sagility Ltd

BSE: 544282 NSE: SAGILITY ISIN: INE0W2G01015
  |   Sector:  Miscellaneous   |   Industry:  Business Support

Snapshot

Q.1 Which industry/sub-sector does Sagility Ltd belong to?
Sagility Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.
Q.2 Is Sagility Ltd a good quality company?
Sagility Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Sagility Ltd undervalued or overvalued?
Sagility Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 21.28 61.96
Price to Book 2.17 1.93
Price to Sales 2.77 11.73
EV to EBITDA 10.81 34.68
Q.4 Is Sagility Ltd a good buy now?
Sagility Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Sagility Ltd?
Sagility Ltd Gross profit margin which is the profit after deduction of direct costs, is 24.5% for FY-2026, which is above its 5-year median of 19.7%, indicating increasing margins.

Q.2 Operating Profit Margin of Sagility Ltd?
Sagility Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.53% for FY-2026, which is in line with its 5-year median of 23.47% indicating stable margins.

Q.3 Net Profit Margin of Sagility Ltd?
Sagility Ltd Net Profit Margin is 12.86% for FY-2026, is above its 5-year median of 4.8%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 24.5 19.7
Operating Profit Margin (%) 24.53 23.47
Net Profit Margin (%) 12.86 4.8

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Sagility Ltd?
Sagility Ltd Return on Asset is 7.92%, which is above its 5-year historical median of 2.17%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Sagility Ltd?
Sagility Ltd Return on capital employed is 13.82% for FY-2026, which is above its 5-year historical median of 5.05%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

C: How much debt does the business have and is it at a sustainable level?

Q.6 Debt to Equity ratio of Sagility Ltd?
Sagility Ltd Debt-to-Equity ratio is 0.06, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.7 Debt to cash flow from operations of Sagility Ltd?
Sagility Ltd Debt to cash flow from operations is 0.47, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sagility Ltd?

Q.1 Promoter shareholding and pledge status of Sagility Ltd?
Promoters hold 50.95% of the Sagility Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sagility Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sagility Ltd vs industry peers?
Sagility Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 43.4 16.2
Operating Profit Growth (%) 35.6 20
Net Profit Growth (%) 71.6 17.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.62 0.29
ROE (%) - 3.68
ROCE (%) 13.82 9.18
Cash Conversion Cycle (days) 63.43 40

Valuation & price assessment

Q.1 Stock return of Sagility Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 1.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 1.6%
Q.2 Valuation ratios of Sagility Ltd vs historical?
The current P/E ratio of 21.28 is lower than its historical median of 61.96, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 21.28 61.96 26.13
Price to Book 2.17 1.93 2.37
Price to Sales 2.77 11.73 5.96
EV to EBITDA 10.81 34.68 11.62

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