News on Multibagger Stocks: Sonata Software Soars Nearly 8000% in 11 Years – Should You Buy Now?

Sonata Software’s stock has seen impressive growth over the years. Four years ago, the shares were priced at ₹89 each. Now, they have risen by 630% to ₹724 per share. Over the past 11 years, the stock has soared by a remarkable 7950%.

Strong Performance in 2023

The year 2023 was particularly good for Sonata Software. The stock closed higher in 11 out of 12 months, achieving a 163% gain. However, from March to May 2024, the stock dropped by 36%. Despite this dip, it has since rebounded and is now 25.66% higher than its March low.

Expert Recommendations

Dalal & Brocha Stock Broking, a domestic brokerage firm, has given Sonata Software a ‘buy’ rating, with a target price of ₹919. This indicates a potential 47% upside from the stock’s recent price of ₹624 per share.

Key Factors for Growth

The brokerage firm highlighted Sonata’s strong partnership with Microsoft and its robust deal pipeline. The company’s focus on Gen AI and Microsoft Fabric, which makes up about 10% of its pipeline, is expected to drive growth.

Microsoft Partnership

Sonata Software has been a top implementation partner for Microsoft for two decades. This partnership, which generates over 50% of Sonata’s international revenue, includes direct sales and implementation services. Microsoft contributes 20% of Sonata’s revenue as a direct customer and another 30% through implementation services.

Significant Deal Pipeline

Sonata Software has a substantial pipeline of about $65 million in AI projects. The company expects AI services to contribute 20% of its revenue within three years. As a featured launch partner for Microsoft Fabric, Sonata has built a pipeline worth approximately $42 million across 75+ clients in three quarters.

Recent Deals

In the most recent quarter, Sonata secured a significant deal with a major U.S. banking firm. This project involves developing a customer 360 platform to consolidate and aggregate customer data across all lines of business for the client, one of the top 10 asset management banks in the U.S.