⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

SONATSOFTW - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Back to Swing Trade List

Swing Trade Rating: 3.2

Stock Code	SONATSOFTW	Market Cap	9,684 Cr.	Current Price	345 ₹	High / Low	672 ₹
Stock P/E	50.1	Book Value	28.6 ₹	Dividend Yield	1.30 %	ROCE	30.6 %
ROE	28.4 %	Face Value	1.00 ₹	DMA 50	361 ₹	DMA 200	403 ₹
Chg in FII Hold	-0.83 %	Chg in DII Hold	0.78 %	PAT Qtr	147 Cr.	PAT Prev Qtr	22.7 Cr.
RSI	34.6	MACD	-6.32	Volume	3,38,745	Avg Vol 1Wk	4,12,727
Low price	286 ₹	High price	672 ₹	PEG Ratio	-16.2	Debt to equity	0.16
52w Index	15.3 %	Qtr Profit Var	-10.8 %	EPS	6.90 ₹	Industry PE	26.4

📊 Based on the given parameters, SONATSOFTW shows moderate potential for swing trading. The stock is trading below its 50 DMA (361 ₹) and 200 DMA (403 ₹), reflecting weak technical momentum. RSI at 34.6 indicates near-oversold conditions, while MACD at -6.32 confirms bearish sentiment. The optimal entry price would be near 335–340 ₹ if stability is confirmed. If already holding, consider exiting around 370–380 ₹ on rebounds unless volume and momentum strengthen further.

✅ Positive

📈 Strong ROCE (30.6%) and ROE (28.4%) highlight excellent efficiency

💹 EPS of 6.90 ₹ supports fundamental strength

📊 Dividend yield of 1.30% provides income support

📈 DII holdings increased (+0.78%), showing domestic institutional confidence

📈 PAT growth compared to previous quarter (147 Cr. vs 22.7 Cr.) indicates operational improvement

⚠️ Limitation

📉 High P/E ratio (50.1) compared to industry average (26.4)

📉 PEG ratio of -16.2 suggests poor growth relative to valuation

📉 Current trading volume below weekly average, showing weaker participation

📉 Current price far below 52-week high (672 ₹), showing resistance pressure

🚨 Company Negative News

📉 Quarterly profit variation (-10.8%) highlights earnings pressure

📉 Decline in FII holdings (-0.83%) shows reduced foreign investor confidence

📉 Technical indicators (RSI and MACD) confirm weak momentum

🌟 Company Positive News

📈 PAT growth compared to previous quarter shows operational recovery

📈 Strong efficiency metrics (ROCE and ROE) support long-term fundamentals

📈 Dividend yield of 1.30% provides steady income for investors

🏭 Industry

📊 Industry PE at 26.4, lower than SONATSOFTW’s valuation, indicating premium pricing

📈 IT services sector remains cyclical, offering trading opportunities with sentiment-driven momentum shifts

📌 Conclusion

SONATSOFTW is a cautious candidate for swing trading. While strong efficiency metrics, dividend yield, and quarter-on-quarter PAT growth provide positives, stretched valuations, weak technicals, and declining foreign investor interest limit immediate upside potential. Optimal entry is near 335–340 ₹, with exit around 370–380 ₹ if already holding. Traders should monitor RSI recovery and MACD trends before fresh positions.

I can also prepare a comparison of SONATSOFTW with SONACOMS and SIEMENS to highlight which one offers the stronger swing trade opportunity.

Back to Swing Trade List

NIFTY 50 - Today Top Swing Trade Stock Picks

NEXT 50 - Today Top Swing Trade Stock Picks

MIDCAP - Today Top Swing Trade Stock Picks

SMALLCAP - Today Top Swing Trade Stock Picks