The stock has seen a surge in trading volumes and strong institutional interest following a major $73 million deal, with technical indicators supporting the bullish view.
Sonata Software shares could double over the long term following the announcement of a major U.S. deal and a decisive technical breakout, according to SEBI-registered analyst Adarsh Nimborkar.
Nimborkar said the $73-million contract, Sonata’s second-largest ever, was a key trigger supporting the company’s strategic pivot towards next-generation digital transformation services.
He said the multi-year deal involves the setup of an AI-enabled modernization engineering center in India and focuses on cloud enablement, cybersecurity, and automation.
He added that the structure and scope of the contract point to long-term revenue visibility and reinforce Sonata’s positioning in high-value digital services.
From a technical perspective, Nimborkar noted that the stock had shown a strong breakout backed by a surge in trading volumes, with the five-day average volume climbing to 19.4 million shares, compared to its usual daily average of around 1 million.
He interpreted this as a sign of strong institutional interest.
He identified ₹380 as the nearest support zone and placed a stop-loss below that level on a closing basis.
He projected three price targets: ₹570 in the next two months, ₹750 over the medium term, and ₹850 as a long-term target, representing over 100% potential upside from current levels.
On Stocktwits, sentiment was‘extremely bullish’, with a ‘high’ volume of user messages.
Some users pointed to a near-term move toward ₹510, while others highlighted the stock’s approach to its 200-day exponential moving average as a key technical indicator.
Shares of Sonata have declined 24.5% so far this year.