Stocks To Buy: Motilal Oswal bets on two healthcare names for up to 32% upside

Brokerage firm Motilal Oswal has initiated coverage on Inventurus Knowledge Solutions (IKS) with a 'Buy' rating and a price target of ₹2,107, implying a 32% upside. The brokerage has also started coverage on Sagility with a 'Buy' and a target of ₹63, indicating a 31% upside, backed by what it calls the strongest EPS growth profiles in its coverage universe.

Indegene, however, has received a 'Neutral' rating with a target price of ₹595, offering a potential 13% upside. Motilal cited that Indegene's earnings growth trajectory is relatively softer than peers.

For IKS, the brokerage expects an EPS CAGR of 32% over FY25-28, outpacing most healthcare BPO peers. It highlighted strong client mining, steady demand, and long term structural growth drivers supporting its view.

Sagility earned a similar positive outlook with an EPS CAGR estimate of 31% over FY25-28, also ahead of most BPO and midcap IT players. Motilal said its consistent client expansion and durable growth visibility strengthen the investment case.

In contrast, Indegene's expected EPS CAGR of 15% over the same period lags its healthcare BPO peers, prompting the Neutral stance.

Motilal wrote that Sagility, Indegene and IKS have emerged as key players within India's BPM and healthcare IT ecosystem, building solid market positions across healthcare and life sciences.

While global clients continue to seek cost efficiency and navigate regulatory complexity, the brokerage believes the sector's structural growth is now being driven by deeper, multi layered trends.

It said the three companies are well placed to capture meaningful market share thanks to domain depth, specialised offerings and strong execution. They are expected to deliver healthy earnings growth by moving up the value chain, benefitting from both higher volumes in core services and premiumisation in digital and advanced capabilities.

Motilal added that growth will be further led by investments in innovation, talent development and strategic client relationships, aligned with the evolving needs of global enterprises.

Key risks include weak healthcare spending in the US and EU, policy changes, currency volatility, price pressure from automation, client consolidation, delays in pharma and life sciences R&D budgets, attrition and technology obsolescence.