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Sonata Software Fundamentals – A Closer Look



Sonata software company

Sonata Software Ltd. is a Banglore-based IT company that focuses on cloud data modernization, Microsoft Dynamics Modernization, Digital contact center setup, managed cloud services, and digital transformation services.

Sonata has a partnership with Microsoft, Amazon, and Google and has been honored with awards for their exceptional services.

The company offers a wide range of IT services and solutions to customers across the globe, including the United States, Europe, and India. The half of revenue comes from the US (52%), followed by Europe at 30%, and the remaining 18% from the rest of the world. However, the Travel & Tourism sector, which accounts for 25% of our business, has been hit hard by the Covid pandemic. They still have strong segments in Outsourced Product Development (27%), Retail Distribution (27%), and other services (21%). Additionally, added 29 new customers in FY20 and maintained a resource utilization rate of 87%.

Growth over the past years

  1. Acquisition Quant System Inc.

Acquisition. Sonata Software to acquire Texas-based Quant Systems”

2. Diversity and Inclusion: Building Diverse Global Firm

“Sonata Software signs with Mumbai Indians as Associate Partner for Women’s T20 league in India”

Sonata Software is the associate partner with Mumbai Indians in the Women’s Premier League (WPL).T

3. Revenue and PAT growth

Over the past decade, the company has experienced a compound annual growth rate (CAGR) of approximately 15% in revenue and 18% in profit after tax (PAT). The revenue stood at Rs 7,449 crore and PAT Rs 464 crore as of Mar’23.

Financial Performance

Over the past 5 years, the company has experienced substantial growth in both sales and profits. Its revenue has increased three-fold from Rs 2,454 crore in 2018 to Rs 7,449 crore in 2023, while its profit has surged more than double from Rs 192 crore in 2018 to Rs 452 crore in 2023. These figures demonstrate the remarkable increase in the company’s profitability and its consistent growth in sales and profits.

The company maintained the highest reserves in Mar’23 of Rs 1,287 crore. The company’s total assets are increasing optimally and stood at Rs 4,357 crore as of Mar’23.

The company’s debt stood at Rs 590 crore. It has shown a slight increase in the last year. The debt-to-equity ratio of the company stood at 0.45 which is negligible. The interest coverage ratio stood at 33.2, which indicates the company can meet its finance cost 33.2 times over. This suggests that the company’s debt is manageable.

Financial Ratios

The current ratio is 1.02, indicating the company has 1.02 times current assets than current liabilities. This suggests the company has enough short-term assets to cover its short-term obligations

The PE of the stock stood at 32.6, whereas the industry PE stood at 36.6 this indicates that the company’s stock is relatively undervalued.

The EPS of the company has recorded a remarkable increase of Rs 18.47 in the last 5 years. Rising from Rs 13.73 in 2018 and Rs 32.2 in 2023.

Return on equity has recorded a 36% increase in the last 5 years.

Shareholding Pattern

The foreign institutional investor (FII) has decreased its stake by about 1.08% in the last 5 years from 14.67% in 2018 to 13.59% in 2023. Additionally, Domestic institutional investors (DII’s) had increased their stake by about 9.48% in the last 5 years.

Peer Comparison

Sonata Software Ltd. has a market capitalization of almost half of its competitors. Its 5 years sales CAGR is higher than its peer. Additionally, its peers have experienced a better PE ratio. The ROE of the company is relatively higher than Coforge Ltd.

ParticularsMarket CapPE ratioROE 5 years sales CAGR
Sonata Software Rs 14,710.36 crore32.5437.68%24.87%
Persistent SysRs 36,138.32 crore59.2941.07%22.45%
CoforgeRs 28,609.17 crore38.3625.13%21.79%

Technical Analysis

Over the past five years, the stock has provided a Compound Annual Growth Rate (CAGR) of 32.4%. Currently, it is being traded at Rs 1,061.50.

To summarize, the company has shown impressive financial performance with consistent revenue growth and profitability throughout the years. Their management practices and focus on innovation have positioned them strongly in the competitive IT services industry. Investors seeking a profitable long-term investment in the technology sector may find Sonata Software appealing due to its positive outlook and potential for growth.

Finance World

Why Muthoot Finance is not affected by the small cap and mid cap fall?



This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?

What is the business of Muthoot Finance?

First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.

Muthoot Finance target price by Kotak

Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.

New Friends and New Frontiers

Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.

Spreading Their Wings

Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.

Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:

So, What’s the Deal?

While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.

Keep following us for more such latest news on TradeAlone.

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Finance World

Infibeam Avenues Ltd expands into the US Market with an Acquisition



Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.

XDuce: A Hub of Innovation

Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.

A Fusion of Giants

So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.

Redefining Financial Technology

Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.

The Road Ahead

According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.

Infibeam Avenues Ltd at a Glance

Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.

Wrapping Up

The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.

Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.

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Finance World

Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year



In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.

A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.

Why Telangana and Andhra Pradesh?

The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.

SCNL’s Blueprint for Empowerment

SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.

A Message from the Leadership

Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”

Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.

Beyond Expansion – A Look at SCNL’s Innovations

SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.

The Road Ahead for SCNL

As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.

Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.

Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.

Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.

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