Nuvama Institutional Equities has initiated 'Buy' ratings on two key players in the US healthcare outsourcing market: Sagility India Ltd and Inventurus Knowledge Solutions Ltd (IKS Health). The brokerage firm cited their complementary exposure across the healthcare value chain and a strategic shift towards AI-led and technology-enabled delivery models as primary reasons for the optimistic outlook.
Sagility: Targeting US Healthcare Payers
Sagility is positioned to capitalize on the growing healthcare payer outsourcing opportunities in the US. With over 25 years of domain expertise and established client relationships, the company serves seven of the top ten US payers. Nuvama highlighted that Sagility's strategic acquisitions have bolstered its capabilities and market access, creating avenues for cross-selling and account expansion.
Nuvama projects Sagility to achieve approximately 13 percent CAGR in USD revenue and 19 percent CAGR in adjusted EPS between FY26 and FY29E. The brokerage anticipates EBITDA margins to remain stable at 24-25 percent during this period, with healthy free cash flow generation and debt repayment expected to strengthen its balance sheet. Sagility is forecasted to achieve a net cash position by FY27E.
The brokerage has set a 'Buy' rating for Sagility with a target price of Rs 60, valuing the stock at 18 times its average FY28-FY29E earnings per share (EPS).
IKS Health: Focus on Healthcare Providers
For IKS Health, Nuvama sees significant growth potential within the rapidly expanding healthcare provider segment, driven by technology-led operating leverage. IKS Health's comprehensive care-enablement platform spans clinical, operational, and financial workflows, allowing it to integrate through individual workflows and expand across the broader patient care journey.
Key acquisitions, including AQuity and TruBridge, have significantly enhanced IKS Health's market position. AQuity has strengthened its inpatient capabilities and access to health systems, while TruBridge has substantially expanded its scale and reach among rural and community hospitals.
Nuvama estimates that IKS Health will deliver around 35 percent CAGR in USD revenue between FY26 and FY29E, largely aided by the consolidation of TruBridge. Organic revenue growth is estimated at approximately 13 percent. EPS is expected to grow at around 26 percent CAGR over the same period.
IKS Health has also received a 'Buy' rating from Nuvama, with a target price of Rs 2,200, valuing the stock at 30 times its average FY28-FY29E EPS.