Hot Stocks To Buy With Anil Singhvi: Vikas Sethi picks Sonata Software; dubs valuation as attractive
Hot Stocks To Buy With Anil Singhvi: Amid high volatility currently being seen in stock markets, Zee Business Managing Editor Anil Singhvi has strongly recommended that investors know their levels very well and engage in stock specific trade.
Hot Stocks To Buy With Anil Singhvi: Amid high volatility currently being seen in stock markets, Zee Business Managing Editor Anil Singhvi has strongly recommended that investors know their levels very well and engage in stock specific trade. The Market Guru also added that volatility means neither southward trend nor northward trend, in fact, the volatility in actual means both side trends. So, it's better to remain neutral towards markets and invest in top stocks that have attractive valuations and strong fundamentals. In this regard, Anil Singhvi today asked Vikas Sethi to share his short-term pick of the day and the Managing Director of Sethi Finmart replied with Sonata Software shares to buy for great returns.
Speaking on the Sonata Software company, Sandeep Jain told Anil Singhvi, "Even though the market has been on the southward trajectory, IT stocks have remained positive and have managed to lead the rally in the Indian stock market. Sonata Software is a mid-cap IT company that has an attractive valuation at the PE multiple of 13 to 14 per cent. It's a zero-debt company and its Return on Capital (ROC) is 50 per cent and its Return on Equity (ROE) is whopping 41 per cent."
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Highlighting upon other fundamentals of the company, Sethi said, "Sonata Software company has three years profit growth in terms of CAGR is 18 per cent and the DIIs and FIIs hold near 32 per cent share in the company. Last year, the company has delivered dividend yield of 5.89 per cent which is also quite attractive." He said that it's a digital transformation company, which is expected to continue garnet whopping business in the coming times."
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On his suggestion to the stock market investors in regard to the Sonata Software shares the Managing Director of Sethi Finmart said, "In my suggestion, one can buy Sonata Software shares at Rs 332 per stock levels for the target of Rs 355 in immediate short-term time-horizon."
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