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Sonata Software Target Price Set at Rs 780 by Emkay Global Financial

Emkay Global Financial has initiated coverage on Sonata Software (SSOF) with a "BUY" rating and a target price of Rs 780, citing a strong revenue growth trajectory in its International IT Services business, which has seen a ~26% CAGR from FY21-24. Despite recent moderation in growth, an anticipated rebound in demand, particularly in discretionary spending in CY25, is expected to enhance SSOF's medium-term prospects. The management aims for a revenue run-rate of USD 1.5 billion by FY27E, with a focus on improving EBITDAM in the low 20s.

mid-tier it firms pursue acquisitions to navigate demand slowdown

Mid-tier IT firms are increasingly pursuing acquisitions to navigate a demand slowdown caused by macroeconomic challenges. Companies like Sonata Software, eClerx, and RateGain are focusing on strategic investments to enhance capabilities and market presence. Sonata anticipates revenue growth in FY25, while Cyient and Newgen Software are leveraging strong vertical performance and opportunities in the Middle East, respectively.

Sonata Software shares rise on securing major modernization deal in Australia

Sonata Software's shares rose over 3% to an intraday high of Rs 649 on November 28, following a multi-million-dollar modernization deal in Australia with a leading access solutions client. The agreement aims to streamline and standardize business processes across 13 countries in the APAC region, enhancing operational efficiency and real-time collaboration among stakeholders. Chief Revenue Officer Anthony Lange emphasized the focus on automating end-to-end processes using Microsoft’s technology to ensure scalability and seamless adoption for the client.

Sonata Software secures multi-million dollar modernization deal in Australia

Sonata Software has secured a multi-million dollar modernization deal in Australia with a global leader in access solutions. This project will standardize business processes across 13 countries, migrate data from legacy systems, and enhance warehousing processes, utilizing Microsoft Fabric for improved decision-making. The deal was finalized in Q1FY25 and follows previous contracts in the region focused on data modernization and system upgrades.

quarterly earnings reports reveal mixed results across various sectors

The Q2 earnings season for FY25 is underway, with major companies like Apollo Hospitals, Kansai Nerolac Paints, and Trident set to release their results. While many firms have reported, the overall corporate earnings scorecard has been weak, with only 62% meeting or exceeding profit expectations, particularly in the consumption sector. Notably, GAIL's earnings missed expectations due to lower gas trading margins, while Power Grid's profit remained flat year-on-year.

Sonata Software secures multi-year AI deal boosting stock by five percent

Sonata Software's stock rose 5% to Rs 613 after securing a multi-year AI-driven managed services contract with a Fortune 500 manufacturing company. This partnership aims to modernize operations and enhance user experience, leveraging AI solutions for improved efficiency and ROI. The collaboration reflects Sonata's commitment to supporting the client's global expansion and digital transformation efforts.

stocks to watch today bajaj finance indus towers paytm and more

Bajaj Finance, Indus Towers, Paytm, Sonata Software, RITES, Persistent, and Olectra Greentech are set to be in focus in today's stock market. Key developments include significant investments, major deals, quarterly earnings, fundraising efforts, and new appointments.

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