2 IT Stocks jump more than 3% and touch their new a 52-week high; Are you holding any?
Domestic benchmark gauges started the week with marginal gains. The 30-share was trading 0.049% higher at 61036.58 points, while the 50-share NSE was quoting at 17,936.65 points, down 0.042% at 11:43 AM on Monday. Financial and FMCG shares were trading in the green, but metal and mining shares traded with losses.
Meanwhile, the shares of two software companies moved northward to reach their respective 52-week highs.
Sonata Software (NS:)
The shares of Sonata Software rallied 9.33% on Monday to reach a fresh 52-week high of ₹ 743.45 apiece. The counter saw a surge in volumes and 15.42 lakh shares had changed hands by 11:47 AM on Monday, as compared to the previous day’s volume of 150.39 thousand shares.
The company offers IT services and product licensing and deployment. Earlier, it had indicated that it won four large deals from cloud transformation, and customer experience modernisation, and also mentioned that none of these deals falls under the vendor consolidation theme.
Sonata Software is a small-cap stock with a market capitalization of ₹ 9423 crores. It has an excellent return on equity of 37.56% and an ideal debt-to-equity ratio of 0.18. The company’s shares were trading at a price-to-earnings ratio (P/E) of 21.48, which is lower than the industry average of 26.97. Further, it has a good dividend yield of 2.46%.
Persistent Systems (NS:)
The shares of Persistent Systems gained 3.56% to reach a fresh 52-week high of ₹ 5084.95 apiece on Monday’s morning trades. 3.78 lakh shares had changed hands by 12:01 PM. The stock has gained in four out of the last five trading sessions and is on an uptrend.
Persistent Systems provides software engineering and strategy services to help companies implement and modernize their businesses. It has its own software and frameworks in addition to partnerships with Salesforce and AWS.
The company has a market capitalization of ₹ 36,677 crores and is a mid-cap stock. It has an ideal return on equity of 22.40% and an ideal debt-to-equity ratio of 0.19. However, its shares were trading at a price-to-earnings ratio (P/E) of 42.80, which is significantly higher than the industry average, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
The post 2 IT Stocks jump more than 3% and touch their new a 52-week high; Are you holding any? appeared first on Trade Brains.
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