Sonata Software shares rose 11%, hit record high today; check details

Shares of multibagger Sonata Software Ltd hit a fresh record high today. The IT stock, which turned ex-bonus on December 12, zoomed 11.11% to a high of Rs 803.55 against the previous close of Rs 723.15 on BSE. Sonata Software stock has climbed 167.18% this year and gained 176% in a year. Total 0.91 lakh shares of the firm changed hands amounting to a turnover of Rs 7.14 crore on BSE. Market cap of the firm climbed to Rs 21,819 crore on BSE.

The company had announced a bonus issue of shares in the ratio of 1:1. The software industry stock fell to a 52-week low of Rs 261.03 on December 19, 2022.

Abhijeet from Tips2trades said, "Sonata Software looks bearish & extremely overbought on the Daily charts with strong resistance now at 745.5. Investors should book profits at current levels as a Daily close below the support of Rs 700 could lead to a target of Rs 625.5 in the near term."

Also read: Sonata Software shares hit 52-week high, turned ex-bonus today

In terms of technicals, the relative strength index (RSI) of the stock stands at 61.9, signaling it's trading neither in the overbought nor in the oversold zone. Sonata Software stock is trading higher than the 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

Sonata Software reported a 10% year-on-year (YoY) rise in Q2 net profit at Rs 124.2 crore against a profit of Rs 112.7 crore in the September 2022 quarter. Revenue climbed 28% to Rs 1,912.6 crore in Q2 from Rs 1,496.0 crore in the corresponding quarter of the preceding fiscal.

EBITDA rose 33% to Rs 220.5 crore in the second quarter against Rs 165.7 crore in the corresponding period of the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Sonata Software specialises in cloud and data modernisation, microsoft dynamics modernisation, digital contact center setup and management, managed cloud services and digital transformation services.

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