When you talk about Vineeta Mahnot and her stock picks, you must
use a hushed tone. Why? Because she has more multibagger stocks to her credit
than any other stock picker.
Vineeta’s latest stock pick is Sonata Software. She points out
that Sonata has reported excellent results for the June 2014 quarter with
revenues, operating profit and margins showing a steep increase. The company is
also debt-free.
At the end of a succinct analysis, Vineeta recommends a buy on
the basis that:
“With improving operating metrics,
restructuring process paying off, healthy balance sheet, large deal wins and
improving margin profile; Sonata Software Ltd. growth prospects and
profitability looks optimistic. We believe the company is trading at an
attractive valuation at 11.88x and 8.94x of FY15EPS of Rs.10.70 and FY16EPS of
Rs.14.22. We initiate a ‘BUY’ on the stock with a target price of Rs.175
(appreciation of about 37%) with the medium to long term investment horizon.”
About Sonata Software
Sonata is a global IT services company with a track record of
serving leading Independent Software Vendors and Enterprise Customers
around the globe. Its unrelenting focus on going deeper with domain knowledge,
technology expertise and customer commitment, coupled with people skills,
strong delivery mechanism and expanding global footprint makes it a
strategic IT partner of choice for best of breed customers. Maintaining its
growth momentum across businesses and geographies, Sonata has been
enhancing stakeholders’ value sustainably.
Standalone financials
Total income has shown a growth of 44%, Earnings
before Interest, Depreciation and Taxes (EBIDTA) a growth of 128% and
Net Profit growth of 242%. Earnings per share at 5.12 showed a growth of
242%.
Now, you have to ponder over the difficult question as to
whether you can really ignore Vineeta Mahnot’s stock recommendation.
Wait for some time.. sure shot..
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