Shares of Sonata Software rallied 5.2 percent on Wednesday, March 22, after the company announced signing of its largest-ever contract for 10 years with a US-based consumer retail company.
The contract has a Total Contract Value (TCV) of USD 160 million and will involve the management of end-to-end IT modernisation and transformation for the client.
During Wednesday’s trade, the stock opened at a price of ₹826 per share against the previous close of ₹802.65 per share and grew further during the early trading session to touch an intraday high of ₹845.
Sonata Software was trading at ₹824.70 apiece, up by 2.75 percent at 11:00 a.m. on the NSE.
The stock touched a 52-week-high of Rs. 855.60 on March 15, 2023, and a 52-week-low of Rs. 457.58 on June 20, 2022, indicating that at the current level, the stock is trading over 80 percent above its 52-week low and just 3.6 percent below its 52-week high.
The stock has grown nearly 19.5 percent in the last one month. Moreover, in the past six months, it has yielded a return of 54.04 percent. Furthermore, the stock has gained over 268.12 percent in the last five years.
On March 2, 2023, the shares of Sonata Software rallied after the digital engineering company announced that it has signed up with Mumbai Indians as an Associate Partner ahead of the premier T20 women's league in India.
Earlier, Sonata’s wholly-owned US subsidiary underwent its biggest-ever acquisition, acquiring a 100 percent stake in US-based Quant Systems (QS) for total consideration of $160 million (4.3x sales) – $65 million to be paid upfront while the rest of $95 million to be paid in next 2 years based on certain milestones.
In addition, Sonata has been chosen as the top System integration (SI) partner for Bayer's new cloud solutions for the agri-food industry.
Furthermore, the company has signed an agreement with enterprise search leader Sinequa, enabling customers to access a powerful intelligent search solution.
The company reported a strong financial performance for the quarter that ended in December 2022. The company's consolidated profit after tax jumped 20 percent YoY and 4 percent QoQ to ₹117.60 crore.
Sonata Software is primarily engaged in the business of delivering information technology services and software solutions. It provides solutions for travel, rail and airline companies by integrating technologies, such as omni-channel commerce, mobility, analytics, cloud and enterprise resource planning.
According to a MintGenie poll, an average of 6 analysts have a ‘BUY’ call on the stock.
