SONATSOFTW - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for SONATSOFTW based on the provided parameters
Swing Trade Rating: 4.2
| Stock Code | SONATSOFTW | Market Cap | 8,668 Cr. | Current Price | 309 ₹ | High / Low | 453 ₹ |
| Stock P/E | 29.0 | Book Value | 29.1 ₹ | Dividend Yield | 1.42 % | ROCE | 42.7 % |
| ROE | 36.9 % | Face Value | 1.00 ₹ | DMA 50 | 270 ₹ | DMA 200 | 314 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | -0.75 % | PAT Qtr | 76.2 Cr. | PAT Prev Qtr | 57.7 Cr. |
| RSI | 68.5 | MACD | 7.25 | Volume | 89,45,137 | Avg Vol 1Wk | 1,06,35,531 |
| Low price | 207 ₹ | High price | 453 ₹ | PEG Ratio | 2.72 | Debt to equity | 0.25 |
| 52w Index | 41.4 % | Qtr Profit Var | 324 % | EPS | 9.94 ₹ | Industry PE | 21.0 |
📊 Analysis: SONATSOFTW shows strong swing trading potential. Current price (309 ₹) is above DMA 50 (270 ₹) and near DMA 200 (314 ₹), reflecting bullish momentum with medium-term resistance. RSI at 68.5 indicates overbought conditions, while MACD (7.25) supports continued strength. Fundamentals are excellent with ROCE (42.7%) and ROE (36.9%), backed by EPS (9.94 ₹). Valuation is moderately high with P/E (29.0) vs industry average (21.0), and PEG ratio (2.72) suggests growth is priced in. PAT improved significantly (76.2 Cr. vs 57.7 Cr.), with quarterly profit variation (+324%) highlighting strong earnings momentum.
💰 Optimal Entry: Entry zone lies between 295 ₹ – 305 ₹, near DMA 50 support.
🔑 Exit Strategy: If already holding, consider exiting around 325 ₹ – 335 ₹, close to resistance levels and near-term highs.
✅ Positive
- Strong ROCE (42.7%) and ROE (36.9%).
- EPS of 9.94 ₹ supports earnings strength.
- Quarterly PAT growth (+324%) highlights momentum.
- Price trading above DMA 50 confirms bullish trend.
- Dividend yield of 1.42% provides income support.
⚠️ Limitation
- RSI at 68.5 indicates overbought conditions.
- P/E ratio (29.0) is above industry average (21.0).
- PEG ratio (2.72) suggests expensive growth valuation.
- Volume (89.4 lakh) below weekly average (106.3 lakh), showing reduced liquidity.
📉 Company Negative News
- Decline in FII holdings (-0.05%) and DII holdings (-0.75%).
- Valuation premium may limit upside potential.
📈 Company Positive News
- PAT improved to 76.2 Cr. from 57.7 Cr., showing strong earnings growth.
- Quarterly profit variation (+324%) highlights operational strength.
- Dividend yield of 1.42% supports investor sentiment.
🏭 Industry
- Industry PE at 21.0 vs SONATSOFTW’s 29.0 — stock trades at a premium.
- IT services sector remains growth-oriented but faces margin pressures.
🔎 Conclusion
⚖️ SONATSOFTW is a strong swing trade candidate with rating 4.2. Entry near 295–305 ₹ offers a favorable setup, while exits around 325–335 ₹ are advisable if already holding. Strong fundamentals and earnings momentum support the trade, though overbought RSI and valuation premium warrant caution.
Would you like me to extend this into a peer benchmarking to compare SONATSOFTW’s swing trade strength against other IT service leaders?