Sagility, IKS Health shares: Brokerage initiates 'Buy' on US healthcare exposure; check target prices

Nuvama Institutional Equities initiated coverage on Sagility India Ltd and Inventurus Knowledge Solutions Ltd (IKS Health) with a 'Buy' rating, citing their respective exposure to the US healthcare payer and provider segments.

The domestic brokerage said the two companies offer complementary exposure across the healthcare value chain, with Sagility focused on payers and IKS Health operating in provider-focused care enablement. It also highlighted their increasing shift towards AI-led and technology-enabled delivery models.

Sagility

Nuvama said Sagility is positioned to benefit from the larger healthcare payer outsourcing opportunity, supported by more than 25 years of domain expertise, established client relationships and cross-selling opportunities.

The brokerage noted that seven of the top 10 US payers are Sagility clients. It added that acquisitions have expanded the company's capabilities and market access, providing avenues for cross-selling and account expansion.

Nuvama expects Sagility to deliver around 13 per cent CAGR in USD revenue and 19 per cent CAGR in adjusted EPS between FY26 and FY29E. It expects EBITDA margins to remain at 24-25 per cent during the period.

The brokerage also expects healthy free cash flow generation and debt repayment to strengthen Sagility's balance sheet, with the company expected to turn net cash by FY27E.

Nuvama has initiated coverage with a 'Buy' rating and a target price of Rs 60, valuing the stock at 18 times the average FY28-FY29E earnings per share (EPS).

IKS Health

For IKS Health, Nuvama sees an opportunity in the faster-growing healthcare provider segment, with scope for technology-led operating leverage.

The brokerage said IKS Health's care-enablement platform covers clinical, operational and financial workflows, allowing the company to enter through individual workflows and expand across the broader care journey.

Nuvama highlighted the acquisitions of AQuity and TruBridge. It said AQuity has strengthened IKS Health's inpatient capabilities and access to health systems, while TruBridge has materially expanded its scale and reach across rural and community hospitals.

The brokerage estimates that IKS Health will deliver around 35 per cent CAGR in USD revenue between FY26 and FY29E, aided by the consolidation of TruBridge. Organic revenue growth is estimated at around 13 per cent.

Nuvama expects IKS Health's EPS to grow at around 26 per cent CAGR over FY26-FY29E.

It has initiated coverage with a 'Buy' rating and a target price of Rs 2,200, valuing the stock at 30 times the average FY28-FY29E EPS.