Shares of Sagility rose 30.6% on Thursday after the company disclosed the purchase of Chirok Health for an enterprise value of $32.3 million (₹2.26 billion). The stock is trading 1.5% higher at ₹45.07, while the market waits for the company’s Q2 earnings on Friday.
The deal values Chirok at 3.6x its revenue, a premium over Sagility’s 0.8x multiple paid for Broadpath. Although Chirok represents only 1% of Sagility’s total revenue, it accounts for 10% of the provider‑segment revenue that Sagility is still under‑exposed to.
JPMorgan notes the acquisition could raise FY27 revenues by 0.6% and FY28 by 1%. It projects Chirok’s EBITDA margin at 35%, markedly higher than Broadpath’s 10‑15% range, and estimates the transaction will be margin accretive.
The provider segment is seen as under‑penetrated with higher margins, offering a larger total addressable market. JPMorgan argues expanding into this niche aligns with industry trends toward outsourcing revenue‑cycle services.
All 14 analysts covering Sagility maintain a "buy" stance. JPMorgan’s target price of ₹58 reflects a 30.8% upside from current levels, reinforcing the consensus view of a bullish outlook.
Looking ahead, analysts will scrutinize the upcoming Q2 results for revenue growth and margin performance. The acquisition is expected to influence forward guidance, with potential adjustments to FY27 and FY28 targets.