Sonata Software Limited (SONATSOFTW) AI Stock Analysis

• Market Cap: ₹104.81B
• Dividend Yield: 0.32%
• Average Volume (3M): 109.98K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 2.15
• Revenue Growth: 16.11%
• EPS Growth: 45.45%
• Country: IN
• Employees: 6,043
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 4.30
• Shares Outstanding: 280,424,800
• 10 Day Avg. Volume: 87,229
• 30 Day Avg. Volume: 109,976
• PEG Ratio: 0.61
• Price to Book (P/B): 5.68
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 16.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹430.00
• Price Target Upside: 10.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹409.00 ▲(4.98% Upside)

Sonata Software Limited's overall stock score is driven primarily by its strong financial performance, which is the most significant factor. Technical analysis indicates some bearish trends, while valuation suggests moderate pricing. The absence of earnings call data and corporate events means these factors do not influence the score.

Sonata Software Limited Business Overview & Revenue Model

Company Description

Sonata Software Limited, together with its subsidiaries, provides information technology services and solutions in India, the United States, Europe, the Middle East, and Australia. It also offers software development, technical, and product marketing services, as well as consulting services. In addition, the company delivers solutions for customers in retail, manufacturing, distribution, travel, service, and software industries through its software solutions, such as Brick & Click Retail Platform, Modern Distribution Platform, Rezopia Digital Travel Platform, Kartopia E-commerce Platform, Halosys enterprise development automation Platform, Commodity Trading and Risk Management Platform, and KODO. It offers its services in the areas of application management, quality assurance, analytics, information security, cloud enablement, cloud migration, and mobility. Further, the company resells product licenses of software companies, such as Microsoft, IBM, Oracle, etc. Sonata Software Limited has alliances with Microsoft. The company was incorporated in 1994 and is headquartered in Bengaluru, India.

How the Company Makes Money

Sonata Software generates revenue primarily through its IT services and solutions, which are delivered on a project basis or through long-term contracts with clients. Key revenue streams include consulting fees, software development services, and maintenance and support contracts. The company also earns revenue from its proprietary products and platforms, which are designed to enhance business processes for its clients. Significant partnerships with major technology firms and cloud service providers enable Sonata Software to expand its service offerings and access new markets, thereby contributing to its earnings. Additionally, the company benefits from recurring revenue models, particularly in areas such as cloud services and managed services, which provide a stable income stream.

Sonata Software Limited Financial Statement Overview

Summary

Sonata Software Limited shows strong financial performance with robust revenue growth, improved profit margins, and efficient cost management. The balance sheet is solid with a balanced debt-to-equity ratio, and cash flows are healthy, indicating effective capital management.

Income Statement

Sonata Software Limited has demonstrated strong revenue growth with a significant increase from the previous year, indicating robust business expansion. The gross profit margin is healthy, reflecting efficient cost management. Net profit margin has improved, suggesting effective control over expenses and a boost in profitability. The EBIT and EBITDA margins are also favorable, highlighting strong operational performance.

Balance Sheet

The company's balance sheet shows a solid equity base with a reasonable debt-to-equity ratio, indicating a balanced approach to leveraging. Return on equity is strong, showcasing efficient use of equity to generate profits. The equity ratio suggests a stable financial structure, though there is some reliance on liabilities which could pose a risk in turbulent markets.

Cash Flow

Sonata Software's cash flow position is strong, with a significant increase in free cash flow, demonstrating effective capital management and operational efficiency. The operating cash flow to net income ratio indicates solid cash generation capabilities. However, the company needs to monitor its financing activities to ensure sustained cash flow stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	105.95B	101.57B	86.13B	74.49B	55.53B	42.28B
Gross Profit	13.00B	13.25B	15.30B	10.60B	8.41B	6.65B
EBITDA	6.78B	6.89B	6.77B	6.71B	5.64B	4.06B
Net Income	4.28B	4.25B	3.08B	4.52B	3.76B	2.44B
Balance Sheet
Total Assets	0.00	47.55B	51.49B	43.57B	25.55B	19.47B
Cash, Cash Equivalents and Short-Term Investments	6.83B	6.95B	11.38B	9.30B	8.96B	7.21B
Total Debt	0.00	5.16B	7.65B	5.91B	1.59B	1.85B
Total Liabilities	-17.06B	30.49B	37.43B	30.56B	14.56B	10.41B
Stockholders Equity	17.06B	17.06B	14.06B	13.01B	10.99B	9.05B
Cash Flow
Free Cash Flow	0.00	5.76B	2.55B	2.27B	4.41B	4.41B
Operating Cash Flow	0.00	6.44B	2.81B	2.68B	4.50B	4.43B
Investing Cash Flow	0.00	-4.36B	-543.10M	-8.55B	-834.70M	-1.14B
Financing Cash Flow	0.00	-4.33B	-1.08B	1.87B	-2.71B	-621.00M

Sonata Software Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 389.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SONATSOFTW, the sentiment is Positive. The current price of 389.6 is above the 20-day moving average (MA) of 372.45, above the 50-day MA of 370.07, and above the 200-day MA of 389.59, indicating a bullish trend. The MACD of 3.86 indicates Negative momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 78.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SONATSOFTW.

Sonata Software Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSOFT	72 Outperform	₹103.34B	21.74	―	1.64%	-2.00%	-25.81%
SONATSOFTW	69 Neutral	₹104.81B	24.22	―	0.32%	16.11%	45.45%
MASTEK	65 Neutral	₹66.26B	18.10	―	1.56%	11.91%	-1.02%
NETWEB	65 Neutral	₹205.76B	151.99	―	0.07%	47.18%	38.90%
ROUTE	65 Neutral	₹44.84B	26.21	―	1.12%	6.36%	-54.41%
HAPPSTMNDS	62 Neutral	₹77.16B	38.94	―	1.24%	21.31%	-16.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%