Name of Author: Satyam Mishra
F1 2024-26 – 021330124360, ITM Business School, Kharghar, Maharashtra, India
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 center setup and management, managed cloud services and digital transformation services services. Sonata aims to help businesses accelerate their modernization and digital transformation journeys
Cureent share price of Sonata Software is 574.80
(date-8/10/2024.13:03)
Objective: Findout the Beta of Sonata Software and its significance
Data Collection: Data of Sonata Software and Nifty50 was downloaded from 01/05/2023 to 30/04/2024 through NSE, data is manipulated to get Friday closing prices.Weekly return of Nifty50 is taken as ‘X’ and Sonata Software as ’Y’.Weekly return of Sonata Software was regressed on Nifty50.Weekly return calculate by formula (Yt-1-Yt)Yt*100
Data Analysis: The equation was the weekly return of Sonata Software is equal to =0.08+0.97 on weekly return of Nifty50 i.e. (y= 0.08+0.97x)
T-stats=2.68,N=48, R square=0.028, F=7.21, P.value =0.007
Results: The above equation shows the relationship between Nifty50 and weekly returns of Sonata software the positive sign before coefficient of weekly return of Nifty50 means there is a positive relationship if nifty rises Sonata software will also rise and vice-versa. IF Nifty rises by1 unit then Sonata software will rise by 0.97 unit. Figure in bracket is T-stats is Beta fot P.value which is 0.007 which is less than 0.05 meaning Beta is significant at 5 % level.
R square=0.028 meaning 2.8 % of companies return is explained by Nifty50 and the balanced 97.6% may be due to fundamentals .F is 7.21 and P value is 0.007 meaning that overall model is statistically significant.
Conclusion: As Sonata software beta is 0.97 which is less than 1 therefore it’s advisable to invest for long term duration.
