tiprankstipranks
Trending News
More News >
Sonata Software Limited (IN:SONATSOFTW)
:SONATSOFTW
India Market
Advertisement

Sonata Software Limited (SONATSOFTW) AI Stock Analysis

Compare
3 Followers

Top Page

IN:SONATSOFTW

Sonata Software Limited

(SONATSOFTW)

Select Model
Select Model
Select Model
Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
₹415.00
▲(16.08% Upside)
Sonata Software Limited's overall stock score is driven primarily by its strong financial performance, which is the most significant factor. The technical analysis suggests a neutral market position, and the valuation indicates moderate pricing. The absence of earnings call data and corporate events means these factors do not influence the score.

Sonata Software Limited (SONATSOFTW) vs. iShares MSCI India ETF (INDA)

Sonata Software Limited Business Overview & Revenue Model

Company DescriptionSonata 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 MoneySonata 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue101.57B101.57B86.13B74.49B55.53B42.28B
Gross Profit14.12B14.78B15.30B10.60B8.41B6.65B
EBITDA7.57B6.89B6.35B6.71B5.64B4.06B
Net Income4.25B4.25B3.08B4.52B3.76B2.44B
Balance Sheet
Total Assets47.55B47.55B51.49B43.57B25.55B19.47B
Cash, Cash Equivalents and Short-Term Investments6.95B6.95B11.38B9.30B8.96B7.21B
Total Debt5.16B5.16B7.65B5.91B1.59B1.85B
Total Liabilities30.49B30.49B37.43B30.56B14.56B10.41B
Stockholders Equity17.06B17.06B14.06B13.01B10.99B9.05B
Cash Flow
Free Cash Flow0.005.76B2.55B2.27B4.41B4.41B
Operating Cash Flow0.006.44B2.81B2.68B4.50B4.43B
Investing Cash Flow0.00-4.36B-543.10M-8.55B-834.70M-1.14B
Financing Cash Flow0.00-4.33B-1.08B1.87B-2.71B-621.00M

Sonata Software Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price357.50
Price Trends
50DMA
376.42
Negative
100DMA
390.40
Negative
200DMA
426.27
Negative
Market Momentum
MACD
-1.90
Positive
RSI
34.15
Neutral
STOCH
5.28
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 357.5 is below the 20-day moving average (MA) of 373.15, below the 50-day MA of 376.42, and below the 200-day MA of 426.27, indicating a bearish trend. The MACD of -1.90 indicates Positive momentum. The RSI at 34.15 is Neutral, neither overbought nor oversold. The STOCH value of 5.28 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
₹67.11B16.8815.27%1.62%13.04%30.69%
70
Outperform
₹100.25B23.170.36%16.11%45.45%
70
Outperform
₹209.40B161.3321.59%0.07%59.90%49.33%
68
Neutral
₹50.40B17.1513.11%1.38%8.74%-19.10%
66
Neutral
₹100.60B21.1614.86%1.80%-0.19%-25.97%
66
Neutral
₹81.67B42.1611.73%1.12%26.47%-21.31%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SONATSOFTW
Sonata Software Limited
343.50
-278.61
-44.78%
IN:BSOFT
Birlasoft Limited
347.75
-245.89
-41.42%
IN:HAPPSTMNDS
Happiest Minds Technologies Ltd.
530.60
-271.03
-33.81%
IN:MASTEK
Mastek Limited
2,166.50
-404.35
-15.73%
IN:NETWEB
Netweb Technologies India Limited
3,585.10
1,071.04
42.60%
IN:ROUTE
Route Mobile, Ltd.
791.95
-757.03
-48.87%

Sonata Software Limited Corporate Events

Sonata Software Promoters Maintain Unencumbered Shareholding
Jul 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 25, 2025