Rs 10,000 investment in this multibagger BSE500 stock turned to Rs 4 lakh in just 10 years

economictimes.indiatimes.com:

Sonata Software have offered massive returns to investors in the last 10 years. The shares have risen 4300% over the decade. Accordingly, if an investor had invested Rs 10,000 in the stock 10 years ago and stayed put, the investment would have swelled to Rs 4 lakh, according to an analysis by ET Markets.

In the last three years, the stock has surged 250% and given returns of 488% in the last five years. Sonata Software, a BSE500 company with a market capitalization of about Rs 14,500 crore, provides technology-driven business solutions. The company distributes packaged software applications such as breed software, technical expertise, management tools, enterprise resource planning, customer relationship management, analytics, and managed testing business solutions.

It has an EPS of 9.58 on a trailing twelve-month (TTM) basis and the stock is currently trading at a PB of 26.37. According to the latest shareholding pattern available with the exchanges, public shareholders own a majority of the stake at 70.77%, while the rest of 26.37% lies with the promoters. Among the public shareholders, mutual funds have about 13.57% stake, while foreign investors own 13.01%.

Retail investors have a combined holding of 22.63% in the company. For the first quarter ended June, Sonata Software's total revenues grew by 8% YoY to Rs 235 crore as compared to Rs 218 crore in Q4FY22. PAT stood at Rs 3.71 crore.Technical outlook — What should investors do? Analysts say the stock is looking strong on daily and weekly chart patterns with most of the momentum indicators in the buy zone.