This large-cap multibagger partners with a global leading company; secured contract of USD 12.6 million with 175 per cent returns in a year!

The stock price has delivered multibagger returns of 174.90 per cent in one year and around 5,000 per cent returns in a decade.

Sonata Software has entered into a strategic partnership with AMMEGA Group, a global leader in Conveyor Belts and Power Transmission. Through Sonata's Modernization solution, AMMEGA aims to standardize and optimize its business processes, enhance transparency, improve collaboration and efficiency, and foster digital innovations for sustainable belting solutions globally.

The ERP transformation program will see AMMEGA migrate its Customer Solution Centers and Manufacturing Units to Dynamics 365 Finance and Supply Chain Management, supported by Sonata's platform-based approach and Platformation™ methodology for long-term value delivery.

Management Commentary

“We look forward to collaborating with Sonata to optimise and standardise our business processes. Sonata will assist us in delivering an ERP transformation programme, accelerating our journey towards business growth. It will be delivered with a hybrid agile approach and strong programme management to better serve our customers. All backed by Ammega's belting expertise and emphasis on manufacturing operations,” said Arnd Simon, Chief Information and Digital Officer at AMMEGA Group.

“Sonata’s experience in Transformation, with expertise in end-to-end services and modernisation engineering will enable Ammega’s journey to be future-ready. We are excited to partner with them to bring optimised and standardised business processes, gaining adequate controls, visibility, and insights to fuel the business growth. We look forward to a fruitful partnership enabling Ammega to improve its market leadership,” said Claes Lemnell, Vice President, Head of Europe at Sonata Software.

Company-Secured Lucrative Deals in H1FY24

In the current fiscal year, our company has demonstrated impressive success in securing substantial large deals, having won a total of 10 significant contracts year-to-date (YTD). Our robust sales pipeline is further indicative of our sustained momentum, with 35 large deals currently under pursuit. Notably, our focus on engaging with Fortune 500 clients has proven fruitful, as 38 per cent of our large deals in the pipeline are with such prestigious partners, underscoring our commitment to high-value collaborations.

Among the key large deal wins, the partnership with Premier 3rd party logistics stands out, securing a substantial USD 12.6 million contract over the next three years. This engagement involves the development and hosting of a logistics application on Microsoft Azure. Success extends to the Communication & Managed Network sector, where company have secured a USD 6.5 million contract over seven years for business services, including Finance & Operations and the implementation of Dynamics 365. The third noteworthy win involves an outsourced industrial steel service, securing a USD 5.7 million contract over six years to build a next-generation trading platform.

This is a Large-Cap IT stock with a market capitalization of Rs 20,861 crore. The stock price has delivered multibagger returns of 174.90 per cent in one year and around 5,000 per cent returns in a decade. The company has delivered good profit growth of 19.2 per cent CAGR over last 5 years and has a good return on equity (ROE) track record delivering ROE of 35.8 per cent in last 3 years. The company has been maintaining a healthy dividend payout of 55.3 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.