Recommendations From Computer Software & Infrastructure Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations

Sonata Software has been granted a patent for enabling users to be notified across web, SMS, email and in-app push notifications. The patent was granted for a key technology innovation in the Halosys mobility platform, which the Bengaluru-based company got through an acquisition that enables users based on events matching a pre-configured set of filters including the user’s location, time of day, along with the data from the event’s object graph. On the segmental revenue front, it has earned 63.33 per cent from products and remaining 36.67 per cent from services in FY16. On the financial front, its revenue increased 31.46 per cent to Rs.522 crore in Q2FY17 as compared to the same period in the previous financial year. Its net profit declined 3.84 per cent to Rs.37.82 crore in Q2FY17 as compared to the same period in the previous fiscal year. On recent tie-ups, we recommend investors to buy the stock.

Titagarh Wagons has received an order for construction of two fuel barges for the Indian Navy in its recently added ship-building vertical. The company has been accredited with registration by the Ministry of Defence (Navy), Directorate of Ship Production for undertaking construction of ‘non-weapon platforms upto 120 m length’ and ‘all types of yardcraft’. On the financial front, Titagarh Wagons’ topline more than doubled to Rs.403 crore in Q2FY17 as compared to the same period in the previous financial year. The company posted EBITDA of Rs.32.49 crore in Q2FY17 as against EBITDA of Rs.8 lakh in Q2FY16. It has witnessed turnaround in bottomline and posted net profit of Rs.8.14 crore in Q2FY17 as against net loss of Rs.9.6 crore in Q2FY16. On strong financials in the latest quarter, we recommend a ‘buy’ on the stock