SONATSOFTW - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | SONATSOFTW | Market Cap | 8,856 Cr. | Current Price | 316 ₹ | High / Low | 569 ₹ |
| Stock P/E | 45.8 | Book Value | 28.6 ₹ | Dividend Yield | 1.39 % | ROCE | 30.6 % |
| ROE | 28.4 % | Face Value | 1.00 ₹ | DMA 50 | 341 ₹ | DMA 200 | 385 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | -0.03 % | PAT Qtr | 147 Cr. | PAT Prev Qtr | 22.7 Cr. |
| RSI | 41.1 | MACD | -9.96 | Volume | 9,27,482 | Avg Vol 1Wk | 5,93,484 |
| Low price | 286 ₹ | High price | 569 ₹ | PEG Ratio | -14.8 | Debt to equity | 0.16 |
| 52w Index | 10.4 % | Qtr Profit Var | -10.8 % | EPS | 6.90 ₹ | Industry PE | 24.8 |
📊 SONATSOFTW shows moderate potential for swing trading. The current price (316 ₹) is below both the 50 DMA (341 ₹) and 200 DMA (385 ₹), indicating bearish momentum. RSI at 41.1 suggests the stock is approaching oversold territory, while MACD (-9.96) confirms negative momentum. Fundamentals are strong with ROCE (30.6%) and ROE (28.4%), but high P/E (45.8 vs industry PE of 24.8) and negative PEG ratio (-14.8) raise valuation concerns. Quarterly PAT dropped (-10.8%), and institutional sentiment is weak with both FII (-0.06%) and DII (-0.03%) reducing holdings.
💡 Optimal Entry Price: Around 300–310 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 340–350 ₹ (short-term resistance at 50 DMA) or if RSI rises above 55 with improving momentum.
✅ Positive
- Strong ROCE (30.6%) and ROE (28.4%) highlight operational efficiency.
- EPS of 6.90 ₹ supports earnings visibility.
- Dividend yield of 1.39% provides passive returns.
- Debt-to-equity ratio of 0.16 shows manageable leverage.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates bearish trend.
- High P/E of 45.8 compared to industry PE of 24.8 suggests overvaluation.
- Negative PEG ratio (-14.8) highlights poor valuation relative to growth.
- Institutional holdings declined slightly (FII -0.06%, DII -0.03%).
📉 Company Negative News
- Quarterly PAT variation (-10.8%) shows earnings weakness.
- Weak technical indicators (negative MACD, price below DMA levels).
📈 Company Positive News
- Strong efficiency ratios (ROCE and ROE).
- Dividend yield of 1.39% supports investor confidence.
- Stock approaching oversold RSI levels, offering potential rebound opportunity.
🏭 Industry
- Industry PE at 24.8 vs SONATSOFTW’s 45.8 highlights premium valuation.
- IT services sector remains cyclical but benefits from digital transformation demand.
🔎 Conclusion
SONATSOFTW is a moderately attractive swing trade candidate. Entry near 300–310 ₹ offers a favorable risk-reward setup, with exit targets around 340–350 ₹. Strong fundamentals and dividend yield provide stability, but high valuations, weak technical momentum, and declining profits suggest cautious trading. Best suited for short-term traders looking for rebound opportunities.