SONATSOFTW - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | SONATSOFTW | Market Cap | 6,736 Cr. | Current Price | 240 ₹ | High / Low | 464 ₹ |
| Stock P/E | 27.5 | Book Value | 28.6 ₹ | Dividend Yield | 1.83 % | ROCE | 30.6 % |
| ROE | 28.4 % | Face Value | 1.00 ₹ | DMA 50 | 287 ₹ | DMA 200 | 356 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | -0.03 % | PAT Qtr | 57.7 Cr. | PAT Prev Qtr | 147 Cr. |
| RSI | 31.4 | MACD | -17.6 | Volume | 8,92,870 | Avg Vol 1Wk | 7,11,124 |
| Low price | 229 ₹ | High price | 464 ₹ | PEG Ratio | -8.89 | Debt to equity | 0.16 |
| 52w Index | 4.77 % | Qtr Profit Var | 874 % | EPS | 7.86 ₹ | Industry PE | 20.9 |
📊 Chart & Trend Analysis: SONATSOFTW is trading at ₹240, below both its 50 DMA (₹287) and 200 DMA (₹356), indicating bearish momentum. RSI at 31.4 suggests oversold territory. MACD at -17.6 confirms negative crossover. Bollinger Bands show price near the lower band, signaling weakness with potential support around ₹229–₹235.
📈 Volume Trends: Current volume (8,92,870) is higher than the 1-week average (7,11,124), showing strong participation despite price weakness.
🔑 Momentum Signals: Short-term momentum is weak, with support around ₹229–₹235 and resistance near ₹280–₹290.
💰 Entry Zone: ₹229–₹235 (near support).
📉 Exit Zone: ₹280–₹290 (resistance near 50 DMA).
📌 Trend Status: The stock is reversing downward with bearish bias, showing no clear recovery signs yet.
Positive
- EPS of ₹7.86 with profitability.
- ROCE at 30.6% and ROE at 28.4% indicate strong efficiency.
- Dividend yield of 1.83% provides steady income.
- Debt-to-equity ratio at 0.16, showing low leverage.
Limitation
- High P/E ratio (27.5) compared to industry average (20.9).
- PEG ratio of -8.89 suggests weak growth prospects.
- Trading well below both 50 DMA and 200 DMA.
Company Negative News
- PAT declined sharply from ₹147 Cr. to ₹57.7 Cr. quarter-on-quarter.
- FII holdings decreased by 0.06% and DII holdings by 0.03%, showing reduced institutional confidence.
Company Positive News
- Quarterly profit variation improved significantly (+874% YoY).
- Strong ROCE and ROE highlight operational efficiency.
Industry
- Industry PE at 20.9, lower than SONATSOFTW’s valuation, showing premium pricing.
- IT services sector remains resilient with digital transformation demand.
Conclusion
⚖️ SONATSOFTW is reversing downward with bearish undertones, trading below key moving averages. Optimal strategy: accumulate cautiously near ₹229–₹235 support and consider profit booking around ₹280–₹290 resistance. Long-term investors should monitor valuation premium and profit stability, but strong ROCE/ROE and dividend yield provide some cushion.