Sonata Software shares hit fresh 52-week high; analyst sees 8% upside
Sonata Software stock jumped nearly 20 per cent since January 24, 2023, after the company announced strong earnings for the December quarter of this fiscal. The companys IT services dollar revenues grew 4.7 per cent sequentially and 3.9 per cent in constant currency (CC) terms, while it closed four large deals in the third quarter of FY23.
Shares of Sonata Software touched their fresh 52-week high of Rs 753 on Monday surging nearly 11 per cent on the BSE on the intraday basis. The stock fell short of its all-time high of Rs 773 per cent which it hit on October 20, 2021.
Today, this small-cap IT services company was trading with high volumes at Rs 732 per share at the time of filing this story. Sonata Software breached its earlier 52-week high of Rs 689.95 which it touched on Friday, February 16, 2023.
Share Price History
Sonata shares in the last one year have gained nearly 35 per cent as compared to a nearly six per cent rise in the S&P BSE Sensex.
The analyst said that the upgrades in Microsoft Dynamics and tapping Fortune 1,000 clients in the medium to large category bodes well for revenue growth.
Sonata Software is a net debt-free company and has a healthy double-digit return ratio with a return on capital employed (RoCE) of more than 30 per cent.
Technical View
The stock has formed an ascending triangle pattern with higher bottom and a triple top around 600 levels, according to Mugilan K, a technical analyst at Chola Wealth Direct.
The stock is expected to test levels around Rs 800 levels, the Chola Wealth analyst said. he sees an 8 per cent upside from the current levels.
About Sonata Software
Sonata Software, which has a market capitalisation of Rs 10,470.36 crore, offers IT services to travel, retail, agri & commodities, manufacturing, and software vendors.
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