1:1 Bonus, Rs 7/Share Dividend & 10% Rise In Profit: IT Stock Soars 4%, Volume Spurts

Multibagger mid cap IT Software sector stock Sonata Software Ltd shares recorded a surge of 4% intraday as volume too surged by more than 7.12 times after the company reported 10% YoY surge in net profit on October 25 for the quarter ended September 30, 2023. Board of directors of Sonata Software also considered and approved Rs 7 per share interim dividend and bonus issue in the ratio of 1:1 implying shareholders will receive 1 bonus share for every 1 share held as on the record date.

Sonata Software Stock Outlook & Return Today As Sensex Sheds Over 800 Points: Current market price of Sonata Software stock on BSE is Rs 1066.85 per share with intraday rally of 2.35%. Sonata Software shares opened at 1076.75 per share on BSE, hit day's high of Rs 1101.50 per share, and day's low of Rs 1049.25 per share, respectively. The company's market capitalisation is Rs 14,992.91 crore. Sonata Software shares fell 3.29% in last 1-week as Sensex declined 3.69% during this period and S&P BSE Information Technology lost 4.64%.

Sonata Software shares offered return of 31% in last 6-months, gained 84% YTD, jumped 110% in last 1-year, and soared 300% in last 3-years. The rally in Sonata Software shares took place despite BSE Sensex shedding 846 points to 63,202 and Nifty50 fell 260 points to 18,861 at 11:43 am.

Sonata Software Announced Rs 7 Per Share Interim Dividend: As per the exchange filing of the company dated October 25, 2023, "Declared an Interim Dividend of Rs. 7 per share (700% on par value of Rs. 1/-) for the financial year 2023-24. The Record date for the purpose of payment of the Interim Dividend will be on Tuesday, 7th November, 2023. The Interim Dividend will be paid to the registered shareholders on or after Wednesday, 22nd November, 2023 through Electronic mode or by dividend warrants, as applicable."

Sonata Software Approves 1:1 Bonus Share: According to the BSE filing of the company issued on October 25, "Considered, approved and recommended a bonus issue of 1 (one) equity share for every 1 (one) equity share held by the Shareholders of the Company as on the record date. The bonus issue of equity shares will be subject to approval by the Shareholders through Postal Ballot, and any other applicable statutory and regulatory approvals.The Bonus shares once allotted shall rank pari-passu in all respects and carry the same rights as the existing Equity Shares and shall be entitled to participate in full in any dividend and other corporate action, recommended and declared after the new equity shares are allotted."

Sonata Software Q2 Results: The mid cap IT company for the quarter ended September 30, 2023 announced a rise of 10% YoY in its net profit at Rs 124.2 crore from Rs 112.7 crore declared in the corresponding period an year ago, as per the exchange filing. The company announced its total revenue at Rs 1912.6 crore, up 28% against Rs 1496.0 crore declared last fiscal. The company announced a surge of 33% in its EBITDA at operating level to Rs 220.5 crore for the quarter under consideration as compared to Rs 165.7 crore declared in the preceding fiscal.

Sonata Software About: Sonata Software Limited is a leading Modernization engineering company, headquartered in Bangalore. Sonata provides modernization services using its proprietary Platformation^TM approach. It specializes in cloud and data modernization, Microsoft Dynamics Modernization, Digital contact center setup and management, managed cloud services and digital transformation services. Founded in 1986, the company has since grown to have a presence in North America, Europe, ANZ and Asia-Pacific, according to its official website.

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The stock just highlights the dividend, bonus share and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.