Relationship of Sonata Software Ltd with Nifty
Author: Shruti Bagul
Introduction:
Sonata Software Limited is a leading Modernization engineering company, headquartered in Bangalore. Sonata provides modernization services using its proprietary Platformation™ approach. It specializes in cloud and data modernization, Microsoft Dynamics Modernization, Digital contact centre setup and management, managed cloud services and digital transformation services. Founded in 1986, the company has since grown to have a presence in North America, Europe, ANZ and Asia-Pacific. Sonata has partnerships with leading technology providers such as Microsoft, Amazon, Google, among others, and has received several awards and recognition for its services. With a focus on innovation and customer-centricity, Sonata aims to help businesses accelerate their modernization and digital transformation journeys.
Objective:
To calculate beta of Sonata Software Ltd and observe its significance.
Views and reviews:
- Pradip P. Shah Chairman & Managing Director at Sonata Software
Mr. Pradip is a non-executive Independent Director and Chairman of Sonata Software Ltd. He assisted in founding Housing Development Finance Corporation (HDFC) in 1977 and was the founder and Managing Director of Credit Rating Information Services of India Ltd. (CRISIL), India’s first and largest credit rating agency. In April 1998, he started IndAsia, a corporate finance and private equity advisory business. He is also a Director in BASF India Ltd., Godrej & Boyce Manufacturing Company Ltd., Kansai Nerolac Paints Ltd., Pfizer Ltd. and Tata Investment Corporation Ltd. amongst others. He is Chairman of IndAsia Fund Advisors Pvt. Ltd. as well as Member of the Audit Committee, CSR Committee, Risk Management Committee and Nomination and Remuneration Committee of some of these companies. Mr. Shah holds a Degree in Commerce and is an ACA, AICWA and MBA from Harvard University, USA.
- SAMIR DHIR Managing Director & Chief Executive Officer at Sonata Software
Mr. Samir Dhir is the MD and CEO and Member of the Board of Directors of Sonata Software Limited. As a business leader and technologist, Samir has a proven track record for scaling and leading large businesses and expanding into new industries and markets. He is a client-focused leader who has built and managed business in BFSI, Healthcare Life Science, Telecom, Media, and Hi-Tech industries. Before joining Sonata Software, Samir was the CEO – Global Markets and Industries of Virtusa Corporation and was responsible for developing and executing Virtusa’s growth strategy and company P&L of over $1.6B across markets and industry groups worldwide. In addition, he successfully integrated ETouch and Polaris Consulting & Services’ capabilities into Virtusa. Before this, as the Chief Delivery Officer, Samir led the global delivery and practices organization at Virtusa. Samir previously worked for Wipro, managing SAP business and running the managed services practice. Before Wipro, he held key leadership positions with Avaya and Lucent Technologies in the U.K. Samir holds a Master of Business Administration degree from Warwick Business School, U.K., and a Bachelor of Technology degree from the Indian Institute of Technology, Roorkee.
Data collection:
Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and Weekly Closing Prices Where Found out Then Weekly Returns of Nifty a Weekly Return of Sonata Software ltd were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
Data analysis:
|
Equation Y=-0.72+0.028X+e |
(Sonata Software ltd =-0.72+0.028Nifty 50 + e)
T stat for b = -0.9502
R2 = 0.000074
F= 0.0035
The above equation do not show any relationship between nifty 50 (X) and Sonata Software ltd (Y). Sonata Software ltd runs on own fundamentals the t stat for b is -0.9502 not statistically significant at 5 % level, R2is 0.000074 which means 0.0074% Y is explained by X. 99.9926% is the error in model. 0.0035 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
The Beta Of The Sonata Software ltd Is < 1 So The Company Is Good For Long Term Investment.