Rs 8.75/Share Dividend: IT Stock To Trade Ex-Dividend Tomorrow For 875% Dividend Payout

Sonata Software is a mid-cap company with operations in the IT industry. Sonata Software Limited is a Bangalore-based provider of information technology services in India. he company has declared a final dividend of 875% for FY23 and the ex-dividend date is falling tomorrow on Friday 21 July 2023. Due to the company's T+1 settlement type, the record date is also falling on the same date which investors need to be aware of.

Sonata Software Dividend

The Board of Directors have recommended a final dividend of Rs. 8.75/- per equity share or 875% on par value Re. 1/- for the financial year ended 31st March, 2023.

While announcing the record date, Sonata Software informed stock exchanges that "Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Register of Members of the Company will be closed from July 22, 2023 to July 30, 2023 (both dates inclusive) for the purpose of 28th Annual General Meeting ('AGM') of the Company and to determine the members eligible to receive Final Dividend for FY 2022-23. If the final dividend as recommended by the Board of Directors is approved at the AGM, payment of such dividend, subject to deduction of tax at source, will be as under: a. To all beneficial owners in respect of shares held in electronic form, the dividend will be payable as per details furnished by the Depositories for this purpose as at close of business hours on July 21, 2023. b. To all Members in respect of shares held in physical form after giving effect to valid transmission or transposition requests lodged with the Company as at close of business hours on July 21, 2023."

Sonata Software has announced an equity dividend of 1575.00% at a face value of Rs 1, or Rs 15.75 per share, for the financial year ended March 2023. This generates a dividend yield of 1.50% at the current share price of Rs 1050.70. The company has a solid track record of dividend declarations during the past five years. Sonata Software Ltd. has issued 47 dividends since November 27, 2000, according to Trendlyne statistics.

Sonata Software Financials

The company recorded a net income of Rs 1938.47 Cr in Q4FY23 up by 28.49% YoY from Rs 1508.66 Cr in Q4FY22. Its net profit reached Rs 113.77 Cr in March 2023 quarter up by 12.76% YoY from Rs 100.90 Cr in March 2022 quarter. In the year ended FY2023, the net income of Sonata Software was Rs 7519.94 Cr, up by 32.97% from Rs 5655.35 Cr in the year ended FY2022. Its net profit was Rs 451.90 Cr in 12MFY23 up by 20.05% YoY from Rs 376.43 Cr in 12MFY22.

Sonata Software Limited reported a 3.3% drop in net profit from quarter to quarter (QoQ) to Rs 113.8 crore from Rs 117.7 crore in the period from October to December 2022. Sonata Software Limited reported total revenue of Rs 1,913.5 crore, down from Rs 2,260.8 crore in the third quarter of the fiscal year 2022-23 which was approximately 15.4% QoQ lower than Q3FY23. The IT company reported a drop of seven percent in EBITDA, which was Rs. 142.7 crore in Q3FY23 but was Rs. 132.7 crore in Q4FY23.

Sonata Software is yet to declare its Q1FY24 results.

Sonata Software Share Price Target

Ameya Ranadive, Equity Research Analyst at Choice Broking said, "SONATA SOFTWARE, currently trading at 1053, has recently exhibited a significant range breakout after consolidating within the 1040-955 price range for a month. The breakout was confirmed with substantial trading volumes, and the stock price has successfully maintained its position above the crucial level of 1050 following the breakout. Moreover, the stock is demonstrating a strong technical position, trading above all its major moving averages, including short-term (20-day), mid-term (50-day), and long-term (100-day and 200-day) averages."

"The Relative Strength Index (RSI) indicator is currently at 61, signifying a positive momentum in the stock's price action and indicating a favorable market sentiment. Additionally, the RSI has also given a positive crossover, further reinforcing the bullish outlook.

The Bollinger Bands are showing expansion, coinciding with the breakout trade, indicating potential price volatility and further strengthening the bullish case for the stock. Considering the above technical analysis, SONATA SOFTWARE appears to be an attractive buy opportunity. Our outlook suggests potential price targets of 1150-1190. However, it's essential to remain vigilant, and our views would be invalidated if the price falls below 1010, prompting a reassessment of the trade," said Ameya Ranadive.

Gaurav Bissa, VP, InCred Equities said, "Sonata Software has had a very strong upside since 2020 and stock more than doubled in the last one year. This has been one of the strongest midcap IT names in the recent times. The stock witnessed a retest of a 15-year ascending trendline breakout around 550 levels followed by a robust upside. The stock is trading near life high levels with negative divergences in RSI on the weekly charts. It is advised to book partial profits with stoploss trailed to 950 levels. The stock can witness a move till 1150-1200 levels on a close above 1065 levels."

A R Ramachandran, Co-founder & Trainer - Tips2trades said, "Sonata Software is looking bearish with strong resistance at 1081 on the Daily charts. A daily close below 1036 could lead to target of 925 in the near term."

Sonata Software, an Indian information technology services company, announced it has received a status of "tier partner" from Snowflake which US based Data Cloud Company. Company is focused on business expansions. Recently it has signed a deal with TUI Group. Sonata is in buzz for one more reason which is its Cash dividend ₹ 8.75/Share. CMP is 1050, expect a pull back in it nearly 1010, so wait for a fresh entry. Targets that we can see in it are ranging from 1100 to 1700 in midterm and keep strict stop at 900, said V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

Nirav Karkera, Head of Research, Fisdom said, "Sonata software has been bearing the brunt of sectoral headwinds. However, most such challenges can be viewed as intermittent. The mid-tier IT firm is focusing on building strength through high-quality and big-ticket deal wins while building capabilities around emerging technology. The company is indicating focus on shoring up revenues through its international IT services segment. While the company focuses on large deals, most of it depends on modernisation budgets by larger clients which remains sensitive to global macros to an extent. The company exhibits reasonable strength in hiring capabilities as well. A combination of strength emerging from promising pipeline of large deals, successful integration of Quant Systems and commitment to reviving strength in the BFSI sector could be perceived positively by investors.

The outlook on the company remains promising for the near to medium term. SONATASOFT is trading in a higher top higher bottom formation and has witnessed a falling wedge pattern breakout on the daily time frame. Recently, the stock has exhibited a bullish golden cross where the crossover of 9EMA over 21EMA has witnessed a short to medium-term bullish trend. While observing the momentum oscillator RSI (14) in the lower panel of the above chart it suggests the oscillator has taken support near 40 levels and shown a strength to move higher above 55 levels with golden crossover. The immediate support for the stock is placed at 1,000 levels and below that weakness can be witnessed till 970 levels. Similarly, on the higher side, 1,100 is looking achievable and above the 1,140 level could be attempted."

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.