Sagility Ltd.
ISIN: INE0W2G01015 • Market Cap: ₹19,877 Cr
The 5-Pillar Quality Audit for Sagility Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (24.3%), Return on Capital Employed (13.0%), and equity compounding (9.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.06 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (17.0%) and 3Y PAT CAGR (63.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 20.02 vs PEG of 1.36 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 51.0%, backed by 31.4% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.06)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 17.0%)
Revenue has expanded at 17.0% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 63.2%)
Net earnings have compounded at 63.2% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 20.02)
Trading at a P/E multiple of 20.02, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (31.4%)
Mutual funds, domestic DIIs, and foreign FIIs hold 31.4%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Information Technology)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Information Technology space.
Quantitative Strategy Eligibility
Checking SAGILITY against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 81/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Information Technology Sector Peer Comparison
Compare SAGILITY directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Sagility Ltd. (SAGILITY)Current | 81/100 | ₹19,877 Cr | 20.02 | 13.0% | 0.06 | — |
| Tata Consultancy Services Ltd. (TCS) | 79/100 | ₹8.27 Lakh Cr | 16.62 | 60.9% | 0.00 | View |
| Infosys Ltd. (INFY) | 78/100 | ₹4.53 Lakh Cr | 14.97 | 41.1% | 0.00 | View |
| HCL Technologies Ltd. (HCLTECH) | 75/100 | ₹3.59 Lakh Cr | 20.60 | 28.7% | 0.00 | View |
| Wipro Ltd. (WIPRO) | 71/100 | ₹1.78 Lakh Cr | 13.45 | 18.7% | 0.19 | View |
| Tech Mahindra Ltd. (TECHM) | 75/100 | ₹1.55 Lakh Cr | 30.20 | 22.0% | 0.00 | View |
Frequently Asked Questions: Sagility Ltd.
Q:What is the 5-Pillar Fundamental Score for Sagility Ltd. (SAGILITY)?
Sagility Ltd. has a RupeeTools Fundamental Score of 81/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (62/100), Financial Health (86/100), Growth (92/100), Valuation (82/100), and Ownership Quality (85/100).
Q:Is SAGILITY fundamentally strong for long-term investment?
Yes, SAGILITY exhibits solid fundamental strength with a 81/100 score, driven by a return on equity of 9.6% and a debt-to-equity ratio of 0.06.
Q:Does SAGILITY pass the Coffee Can Investing filter?
No. SAGILITY does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does SAGILITY compare against other Information Technology peers?
Within India's Information Technology sector, SAGILITY trades at a P/E of 20.02 and generates an ROCE of 13.0%. Compare its 5-Pillar score of 81/100 against top sector peers like Tata Consultancy Services Ltd. (79/100), Infosys Ltd. (78/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.