Multibagger Software Stock Makes Strong Gain As Board Seeks To Consider Bonus Issue

Sonata is a global technology company and has earned specialization in platform-based digital transformation, supporting businesses to become connected, open, intelligent and scalable. Sonata's Platformation^TM methodology brings together industry expertise, platform technology excellence, design innovation and strategic engagement models to deliver sustained value to customers. The stock of Sonata Software Ltd is making strong buzz for the last two days as the board of directors of the company to consider bonus share issue.

1. What Is Bonus Share

It is the additional shares issued to the existing shareholders without any additional cost, on the basis of the number of shares that a shareholder owns. Bonus shares in other words are company's accumulated earnings which are not issued in the form of dividends, but are transformed into free shares.

2. Sonata Software Ltd To Consider Bonus Share Issue

According to a BSE filing by the board of directors of the company, "This is further to our letter dated 4th July, 2022 intimating that the Board Meeting of the Company is scheduled on Monday, 25th July, 2022, inter alia, to consider and approve Standalone as well as Consolidated Unaudited Financial Results of the Company for the quarter 30th June 2022. Pursuant to Regulation 29(1) & 29(2) of SEBI (Listing Obligations & Disclosure Requirements), Regulations 2015, it is further intimated that the Board of Directors of the Company may consider proposal for issue of Bonus Shares in the aforesaid Board Meeting.

Therefore, the board of directors are scheduled to meet on July 25 of this month to consider proposal of bonus shares.

3. Sonata Software Ltd Stock Outlook

The current market price of the stock is Rs 715.90 apiece at the time of writing the story (11:08 pm). The 52-week high is Rs 1024 apiece and 52-week low is Rs 610 apiece. It is a company with high TTM EPS growth. The stock has surged more than 5% ever since the board announced that it would meet on July 25 to consider issue of bonus share. The stock has given a return of 8% in just 7 days while 12% in 1 month.

Multibagger returns: The stock has given multibagger returns with 343% return in 5 years and 112 return on 3 years.

4. About Sonata Software Ltd

It has emerged a trusted partner of world leaders in the retail, manufacturing, distribution, travel, services and software industries. Sonata's software portfolio includes the Brick & Click Retail Platform©, Modern Distribution Platform©, Rezopia Digital Travel Platform©, Kartopia E-commerce Platform©, Halosys enterprise development automation Platform©, CTRM Commodity Trading and Risk Management Platform© and KODO - AI Powered Customer Experience (CX) Platform. Sonata's Platformation approach ensures services built on Microsoft Dynamics 365, Microsoft Azure, AWS, Cloud Engineering and Managed Services deliver on the Platformation promise, according to its official website.

Market Capitalisation: It has a market capitalisation of Rs 7524 crore.