Shares of Sonata Software climbed 4.93 percent to hit a 52-week high on Thursday 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.
Sonata Software logo will be prominently visible on the players' kits and this partnership marks Sonata Software's first-ever cricket sponsorship, globally.
During Thursday’s trade, the stock opened at a price of Rs. 782 per share against the previous close of Rs. 770.95 per share and grew further during the early trading session to touch an intraday high of Rs. 809. It was trading at ₹781.90, up 1.42 percent, at 11:40 a.m. on the NSE.
The stock touched a 52-week low of Rs. 457.58 on June 20, 2022, indicating that at the current level, the stock is trading over 70 percent above that level.
The stock has grown nearly 25 percent in the last one month. Moreover, in the past six months, it has yielded a return of 44.7 percent. Furthermore, the stock has gained over 226 percent in the last five years.
“It is indeed a matter of pride for us to be associated with Mumbai Indians and the Women's T20 league. This association symbolizes our continued commitment to enable and promote avenues for women's talent to realize their true potential at work and outside of work. We are confident that the players will inspire thousands of Sonatians and others by demonstrating that they are second to none," stated Balaji Kumar, Chief Human Resource Officer of the company.
“We are glad to partner with Sonata Software as we embark on our journey in women’s cricket. We are excited about extending the MI ethos to the women's team and building on the success enjoyed by us over the years," added a Mumbai Indians’ spokesperson.
Sonata Software reported a strong financial performance for the quarter that ended December 2022. The company's consolidated profit after tax jumped 20 percent YoY and 4 percent QoQ to ₹117.60 crore. Ebitda margins in IT services declined 70 bps QoQ to 25.2 percent due to elevated employee costs and increased marketing spending in Q3.
A few days back, 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 $95 million to be paid in next 2 years based on certain milestones.
Domestic brokerage ICICI Direct is bullish on Sonata Software and recommended a 'buy' rating on the stock with a target price of ₹835, reported Moneycontrol.
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, 6 analysts on an average have a ‘BUY’ call on the stock.
