⚠ 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 - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | SONATSOFTW | Market Cap | 7,500 Cr. | Current Price | 268 ₹ | High / Low | 453 ₹ |
| Stock P/E | 25.1 | Book Value | 29.1 ₹ | Dividend Yield | 1.64 % | ROCE | 42.7 % |
| ROE | 36.9 % | Face Value | 1.00 ₹ | DMA 50 | 267 ₹ | DMA 200 | 322 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | -0.75 % | PAT Qtr | 76.2 Cr. | PAT Prev Qtr | 57.7 Cr. |
| RSI | 51.7 | MACD | 2.65 | Volume | 3,33,209 | Avg Vol 1Wk | 6,25,521 |
| Low price | 207 ₹ | High price | 453 ₹ | PEG Ratio | 2.35 | Debt to equity | 0.25 |
| 52w Index | 24.6 % | Qtr Profit Var | 324 % | EPS | 9.94 ₹ | Industry PE | 20.7 |
📈 Chart & Trend Analysis
- Moving Averages: Current price (₹268) is near 50 DMA (₹267) but below 200 DMA (₹322), showing short-term stability but medium-term weakness.
- RSI: At 51.7, the stock is neutral, neither overbought nor oversold.
- MACD: Positive (2.65), indicating mild bullish momentum.
- Bollinger Bands: Price is near the mid-band, suggesting consolidation.
- Volume Trends: Current volume (3,33,209) is below 1-week average (6,25,521), showing weaker participation.
📊 Momentum & Signals
- Short-term momentum: Neutral to mildly positive, supported by MACD but limited by weak volume.
- Support Zone: ₹260 – ₹265 (near-term support).
- Resistance Zone: ₹275 – ₹280 (trendline and psychological barrier).
- Entry Zone: ₹262 – ₹268 (near support, cautious entry).
- Exit Zone: ₹275 – ₹280 (resistance levels).
📉 Trend Status
The stock is currently in a consolidation phase with neutral RSI and modest MACD strength. Sustained move above ₹280 could confirm reversal into an uptrend, while failure to hold ₹260 may trigger downside.
✅ Positive
- Strong ROCE (42.7%) and ROE (36.9%) indicate excellent efficiency.
- Dividend yield of 1.64% provides income stability.
- Quarterly PAT improved (₹76.2 Cr vs ₹57.7 Cr), showing earnings growth.
- EPS of ₹9.94 reflects profitability.
⚠️ Limitation
- P/E ratio (25.1) is above industry average (20.7), making valuation slightly expensive.
- PEG ratio at 2.35, suggesting costly growth valuation.
- Debt-to-equity ratio at 0.25, showing moderate leverage.
- Volume participation is weak compared to average, limiting breakout strength.
📰 Company Negative News
- FII holding decreased (-0.05%), showing reduced foreign investor confidence.
- DII holding decreased (-0.75%), reflecting weaker domestic institutional support.
🌟 Company Positive News
- Quarterly profit variation (+324%) highlights strong earnings recovery.
- Strong ROCE and ROE metrics show operational efficiency.
🏦 Industry
- Industry PE at 20.7, lower than SONATSOFTW’s 25.1, suggesting peers are cheaper.
- IT services sector benefits from digital transformation and global outsourcing demand but faces margin pressures.
📌 Conclusion
SONATSOFTW is in a consolidation phase with neutral technical signals and strong fundamentals. Entry near ₹262 – ₹268 with exit around ₹275 – ₹280 is optimal for short-term traders. Long-term investors should weigh strong efficiency and earnings recovery against high valuations and weak trading volume.