Multibagger IT Stock Wins Outsourcing Deal From US Healthcare Firm, Should You Buy?

Mid cap IT Software company Sonata Software shares gained more than 7% in trade today after it informed via its BSE filing about winning a large multi-year, multi-million dollar strategic IT outsourcing deal from US-Based premier healthcare and wellness company. Current market price of Sonata Software Ltd shares on BSE is Rs 657.70 per share. Sonata Software shares zoomed 152% in last 2-years. The company's market capitalisation stood at Rs 18,443.54 crore. Check details below:

Sonata Software Bags New Deal: According to the regulatory filing of the company dated August 29, 2024, Sonata Software has been chosen as a Strategic IT outsourcing partner by a US-based premier Healthcare and Wellness company. This strategic deal was successfully secured in June 2024, following an extensive evaluation and selection process and was also discussed during our Q1FY25 earnings call on July 31, 2024.

The company's primary focus is delivering personalized, high-quality care that addresses the unique needs of vulnerable patients and underserved populations in challenging clinical environments and other behavioral health settings. It is committed to improving health outcomes through comprehensive, patientcentered programs.

"This significant deal win underscores our commitment to leveraging deep engineering expertise to solve complex business problems for our Healthcare and Lifesciences clients. It also highlights our differentiated capabilities within the Healthcare vertical, enabling us to succeed in a highly competitive landscape," said Samir Dhir, Managing Director and Chief Executive Officer at Sonata Software.

Should You Buy Sonata Software Shares? Brokerage firm ICICI Direct has suggested buy call for Sonata Software shares with target price of Rs 770 as the stock has a strong long-term growth outlook. "The management remains confident in achieving their $1.5 billion target by FY27, albeit delayed by two to four quarters. The IITS (IT services) pipeline is healthy and supported by three large deals won across healthcare, manufacturing, and BFSI," according to the analyst.

"Long-term growth is driven by AI, large deal traction and key client contributions. We expect IT services to grow at a 12.8 per cent CAGR over FY24-26E in dollar terms with a nearly 8.9 per cent growth in FY25," added ICICI Direct.

Sonata Software Share Performance: The 52-week high price of Sonata Software share on BSE is Rs 867.10 per share (as on 27/02/2024) and 52-week low price is Rs 469.05 per share (as on 04/06/2024), respectively. Sonata Software shares offered return of 9% in last 2-weeks, declined over 9% in last 1-month, surged 22% in last 3-months, gained 29% in last 1-year, and offered return of 456% in last 5-years. In last 10-years, Sonata Software stock zoomed 1429%.

Sonata Software Bonus Share: The company recommended 1:1 bonus share in 2023 and fixed December 12, 2023 as the record date.

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.

Disclaimer: The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.