Sonata Software Limited (SONATSOFTW) AI Stock Analysis

• Market Cap: ₹100.64B
• Dividend Yield: 1.59%
• Average Volume (3M): 242.24K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.93
• Revenue Growth: 16.11%
• EPS Growth: 45.45%
• Country: IN
• Employees: 6,043
• Sector: Technology
• Sector Strength: 81
• Industry: Information Technology Services
• EPS (TTM): 3.90
• Shares Outstanding: 280,424,800
• 10 Day Avg. Volume: 100,235
• 30 Day Avg. Volume: 242,238
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹401.00
• Price Target Upside: 11.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ₹401.00 ▲(11.73% Upside)

Sonata Software Limited's strong financial performance is the primary driver of its stock score, reflecting robust revenue and profit growth. However, technical indicators suggest a bearish trend, which weighs down the overall score. The valuation is fair, with a reasonable P/E ratio and modest dividend yield.

Sonata Software Limited Business Overview & Revenue Model

Company Description

Sonata Software Limited (SONATSOFTW) is a global technology company that specializes in providing IT services and solutions across various sectors, including retail, manufacturing, distribution, and travel. The company offers a comprehensive range of services, such as digital transformation consulting, application development, cloud services, analytics, and product engineering. Sonata Software is renowned for delivering innovative solutions that help businesses enhance their operational efficiency and drive digital transformation initiatives.

How the Company Makes Money

Sonata Software Limited generates revenue primarily through its IT services and solutions offerings. The company earns income by providing consulting services, custom application development, and systems integration for businesses looking to leverage technology to improve operations and customer engagement. Additionally, Sonata Software partners with major technology providers, which enables it to offer cloud services, analytics solutions, and digital platforms. These strategic partnerships and the company's focus on high-value digital transformation projects are significant contributors to its earnings. Revenue streams also include managed services, where Sonata oversees and maintains clients' IT infrastructure and applications, ensuring consistent performance and security.

Sonata Software Limited Financial Statement Overview

Summary

Sonata Software Limited presents a robust financial position with strong growth in revenue and profits, supported by efficient cost management and operational effectiveness. The balance sheet is well-managed with a prudent mix of debt and equity, while cash flows reflect healthy financial management practices.

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	101.57B	101.57B	86.13B	74.49B	55.53B	42.28B
Gross Profit	14.12B	14.78B	15.30B	10.60B	8.41B	6.65B
EBITDA	7.57B	6.89B	6.35B	6.71B	5.64B	4.06B
Net Income	4.25B	4.25B	3.08B	4.52B	3.76B	2.44B
Balance Sheet
Total Assets	47.55B	47.55B	51.49B	43.57B	25.55B	19.47B
Cash, Cash Equivalents and Short-Term Investments	6.95B	6.95B	11.38B	9.30B	8.96B	7.21B
Total Debt	5.16B	5.16B	7.65B	5.91B	1.59B	1.85B
Total Liabilities	30.49B	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: Negative
• Last Price: 358.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SONATSOFTW, the sentiment is Negative. The current price of 358.9 is below the 20-day moving average (MA) of 360.40, below the 50-day MA of 388.19, and below the 200-day MA of 443.17, indicating a bearish trend. The MACD of -7.50 indicates Negative momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 19.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SONATSOFTW.

Sonata Software Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MASTEK	72 Outperform	₹75.29B	18.95		0.78%	13.04%	30.69%
HAPPSTMNDS	66 Neutral	₹86.54B	44.67		1.06%	26.47%	-21.31%
NETWEB	66 Neutral	₹174.64B	134.55		0.08%	59.90%	49.33%
SONATSOFTW	65 Neutral	₹100.64B	23.26		1.59%	16.11%	45.45%
BSOFT	65 Neutral	₹104.40B	22.00		1.73%	-0.19%	-25.97%
ROUTE	63 Neutral	₹54.22B	18.45		1.28%	8.74%	-19.10%
Sector *	61 Neutral	$35.56B	8.62	-10.46%	1.86%	8.47%	-8.26%

Sonata Software Limited Corporate Events

Sonata Software Promoters Maintain Unencumbered Shareholding

Sonata Software Limited has announced that as of March 31, 2025, the promoters and members of the promoter group have not created any encumbrance on the shares they hold in the company. This disclosure under Regulation 31(4) of SEBI’s Substantial Acquisition of Shares & Takeovers Regulation, 2011, indicates a stable shareholding structure, which could reassure stakeholders about the company’s financial stability and governance practices.