The stock looks good on the daily and weekly chart so we are recommending a buy for medium term, says Sumit Bilgaiyan of Equity99.
Sonata Software has posted a quite healthy growth in Q1FY19. Its profit zoomed 34 percent to Rs 57.6 crore against Rs 43 crore. EBITDA increased 29 percent to Rs 83.1 crore against Rs 64.5 crore while income increased by 8 percent to Rs 688.3 crore against Rs 634.5 crore.
It's EBITDA margin improves to 10.66 percent from 7.51 percent.
The stock is trading at a PE ratio of 19.8x. The company has reported 15 percent plus CAGR revenue growth and 25 percent plus CAGR PAT growth over last four years.
It has posted return on equity (ROE) & return on capital employed (ROCE) more than 25 percent. The stock looks good on the daily and weekly chart so we are recommending a buy for medium term.Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.