ScoreWhy is Sonata Software Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 31.24%
- Healthy long term growth as Net Sales has grown by an annual rate of 21.45%
- Company has a Debt to Equity ratio (avg) of 0.06 times
2
Positive results in Mar 26
- PAT(Q) Highest at Rs 154.71 cr.
- PBDIT(Q) Highest at Rs 208.69 cr.
- OPERATING PROFIT TO NET SALES(Q) Highest at 8.23%
3
With ROCE of 31.5, it has a Fair valuation with a 4.2 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -24.22%, its profits have risen by 20.5% ; the PEG ratio of the company is 0.8
4
High Institutional Holdings at 34.29%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -24.22% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sonata Software should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sonata Software for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sonata Software
-24.22%
-0.61
39.49%
Sensex
-3.74%
-0.28
13.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.41%
EBIT Growth (5y)
13.39%
EBIT to Interest (avg)
16.12
Debt to EBITDA (avg)
0.77
Net Debt to Equity (avg)
0.06
Sales to Capital Employed (avg)
4.25
Tax Ratio
25.97%
Dividend Payout Ratio
28.76%
Pledged Shares
0
Institutional Holding
34.29%
ROCE (avg)
56.85%
ROE (avg)
31.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
21
Price to Book Value
4.38
EV to EBIT
13.27
EV to EBITDA
11.41
EV to Capital Employed
4.18
EV to Sales
0.79
PEG Ratio
0.79
Dividend Yield
2.74%
ROCE (Latest)
31.48%
ROE (Latest)
26.87%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
PAT(Q)
Highest at Rs 154.71 cr.
PBDIT(Q)
Highest at Rs 208.69 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 8.23%
PBT LESS OI(Q)
Highest at Rs 164.17 cr.
EPS(Q)
Highest at Rs 4.71
-2What is not working for the Company
NET SALES(Q)
At Rs 2,536.19 cr has Fallen at -5.9% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Sonata Software
Profit After Tax (PAT) - Quarterly
Highest at Rs 154.71 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 208.69 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 8.23%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 164.17 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 154.71 cr has Grown at 33.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 116.15 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 4.71
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Sonata Software
Net Sales - Quarterly
At Rs 2,536.19 cr has Fallen at -5.9% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 2,695.57 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Non Operating Income - Quarterly
Highest at Rs 37.57 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
