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Buy Sonata Software: Parag Parikh
Parag Parikh Financial Advisory Services has maintained a buy rating on Sonata Software. Overall for the full year, sonata has reported near expected results with an consolidated earnings of Rs 7.28 versus our expectation of Rs. 7.40 per share.
Parag Parikh Financial Advisory Services has maintained a buy rating on Sonata Software in its research report.
"Overall for the full year, sonata has reported near expected results with an consolidated earnings of Rs 7.28 versus our expectation of Rs. 7.40 per share. The under-performance is mainly reflected in the recent performance, where the earnings have dropped sequentially by 6% on standalone and 13% on consolidated basis. Sonata added 9 new clients during the quarter and 21 clients during the year. The company is looking at acquisitions as a logical attempt to utilize surplus cash and manage growth."
"A overall trend emerging for IT companies in general is that of significant increase in selling costs and decline in volumes & new business flow. In such case, we would favour companies with low cost structure, higher margins, debt-free & cash surplus balance sheet & low absolute valuations, which limit the de-rating risks. We see Sonata Software fit this bill perfectly. We maintain BUY," says Parag Parikh Financial Advisory Services' report.
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To read the full report click on the attachment.........
