Buy Sonata Software, target price Rs 568: ICICI Direct

ICICI Direct has buy call on Sonata Software with a target price of Rs 568. The current market price of Sonata Software Ltd. is Rs 514.1.

Sonata Software Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 5476.70 Crore) operating in IT Software sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 1399.41 Crore, up 73.58 % from last quarter Total Income of Rs 806.21 Crore and up 12.36 % from last year same quarter Total Income of Rs 1245.47 Crore. Company reported net profit after tax of Rs 53.79 Crore in latest quarter.


Investment Rationale
The brokerage expects the stock to continue with its positive momentum and head towards Rs 568 levels as it is the 161.8% external retracement of the recent breather (Rs 527-460) placed around Rs 568 levels.

Promoter/FII Holdings
Promoters held 28.17 per cent stake in the company as of March 31, 2020, while FIIs held 11.66 per cent, DIIs 13.64 per cent and public and other 46.53 per cent.