⚠ 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: 3.2
| Stock Code | SONATSOFTW | Market Cap | 8,811 Cr. | Current Price | 313 ₹ | High / Low | 569 ₹ |
| Stock P/E | 45.6 | Book Value | 28.6 ₹ | Dividend Yield | 1.40 % | ROCE | 30.6 % |
| ROE | 28.4 % | Face Value | 1.00 ₹ | DMA 50 | 344 ₹ | DMA 200 | 387 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | -0.03 % | PAT Qtr | 147 Cr. | PAT Prev Qtr | 22.7 Cr. |
| RSI | 35.3 | MACD | -11.8 | Volume | 3,32,536 | Avg Vol 1Wk | 4,14,745 |
| Low price | 286 ₹ | High price | 569 ₹ | PEG Ratio | -14.7 | Debt to equity | 0.16 |
| 52w Index | 9.50 % | Qtr Profit Var | -10.8 % | EPS | 6.90 ₹ | Industry PE | 23.9 |
📊 Technical Analysis
- Chart Patterns: Stock is trading below both 50 DMA (344 ₹) and 200 DMA (387 ₹), showing weakness and a bearish bias.
- Moving Averages: Current price (313 ₹) under both averages → bearish setup.
- RSI: 35.3 → approaching oversold zone, suggesting limited downside but weak momentum.
- MACD: -11.8 → bearish crossover, confirming downward pressure.
- Bollinger Bands: Price near lower band, oversold condition may trigger short-term bounce.
- Volume Trends: Current volume (3.32 lakh) below 1-week average (4.14 lakh), showing reduced participation.
📈 Momentum & Signals
- Short-term Momentum: Weak, with bearish bias but oversold indicators suggest possible rebound.
- Entry Zone: 305–315 ₹ (near support at 286 ₹).
- Exit Zone: 340–350 ₹ (near 50 DMA resistance).
- Trend Status: Consolidating with bearish tilt; reversal possible only if price sustains above 344 ₹.
✅ Positive
- Strong ROCE (30.6%) and ROE (28.4%) indicate efficient capital use.
- Dividend yield of 1.40% provides income stability.
- EPS of 6.90 ₹ reflects earnings base.
- Debt-to-equity ratio of 0.16 shows manageable leverage.
⚠️ Limitation
- High P/E of 45.6 compared to industry PE of 23.9.
- PEG ratio of -14.7 suggests poor growth-adjusted valuation.
- Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
📉 Company Negative News
- Quarterly profit variation shows decline (-10.8%).
- FII holdings decreased by -0.06% and DII holdings decreased by -0.03%, showing reduced institutional confidence.
📈 Company Positive News
- PAT improved sequentially (22.7 Cr. → 147 Cr.).
- Strong ROCE and ROE compared to peers.
🏭 Industry
- Industry PE at 23.9, much lower than SONATSOFTW’s 45.6, suggesting sector peers may be more attractively valued.
- IT services sector remains growth-oriented but faces margin pressures and global demand fluctuations.
🔎 Conclusion
- SONATSOFTW is consolidating near support levels with bearish signals from DMA, RSI, and MACD.
- Short-term traders may consider entry around 305–315 ₹ with exit near 340–350 ₹.
- Long-term investors should be cautious due to high valuation and weak profitability despite strong efficiency metrics and dividend yield.