Sonata Software Ltd Stock Analysis

BSE: 532221 | NSE: SONATSOFTW | IT - Software | Mid Cap

BSE Share Price Jul 01, 18:01
661.95 -7.00 (-1.05%)

DeciZen - Make an Informed Decision on Sonata Software

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

FAQs

1. Is Sonata Software Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sonata Software Ltd is a good quality company.

2. Is Sonata Software Ltd undervalued or overvalued?

The key valuation ratios of Sonata Software Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Sonata Software Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Sonata Software Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sonata Software:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sonata Software Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 9.1%19.1%32.3%27.6%26.4%27.1%32.7%42.9%40.8%41.8%-
Value Creation Index -0.40.41.31.00.90.91.32.12.0NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 233334467505593689829877781758758
YoY Gr. Rt. %-43.4%39.9%8.1%17.4%16.2%20.5%5.7%-10.9%-3%-
Adj EPS 2.75.910.510.511.512.516.11817.121.622.4
YoY Gr. Rt. %-118.5%77.5%0.1%9.5%9.2%28.7%11.5%-5.1%26.2%-
BVPS (₹) 29.530.43434.345.247.351.135.750.754.854.1
Adj Net Profit 28.462110110119130168187177224235
Cash Flow from Ops. 22.258.383.482.497.314937.1281188144-
Debt/CF from Ops. 0.80.10.11.2000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 14%5.1%-3%-3%
Adj EPS 26%13.4%10.1%26.2%
BVPS 7.13.92.37.9
Share Price 42.4% 34.2% 23.5% -12%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 9.319.732.530.728.827.132.741.239.340.741.1
Op. Profit Mgn % 15.320.526.325.22523.227.32329.918.418.8
Net Profit Mgn % 12.218.623.621.820.118.920.221.322.729.531
Debt to Equity 0.1000.30000000
Working Cap Days 320225191221178134142147240344271
Cash Conv. Cycle 62302242525263673820188

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 41.10%

Net Profit is growing at healthy rate in last 3 years 10.14%

Sales growth has been subdued in last 3 years -2.95%

Sales growth is not so good in last 4 quarters at -2.75%

Latest Financials - Sonata Software Ltd.

Standalone Consolidated
TTM EPS (₹) 22.4 35.8
TTM Sales (₹ Cr.) 758 5,553
BVPS (₹.) 54.1 104.3
Reserves (₹ Cr.) 559 1,086
P/BV 12.23 6.33
PE 29.60 18.44
From the Market
52 Week Low / High (₹) 610.00 / 1030.00
All Time Low / High (₹) 6.35 / 1030.00
Market Cap (₹ Cr.) 6,961
Equity (₹ Cr.) 10.5
Face Value (₹) 1
Industry PE 28.7

Management X-Ray of Sonata Software :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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News

About Sonata Software Ltd

Sonata is a global technology company that enables successful platform-based digital transformation initiatives for enterprises, to create businesses that are connected, open, intelligent and scalable. Sonata’s Platformation methodology brings together industry expertise, platform technology excellence, design thinking-led innovation and strategic engagement models to deliver sustained long-term value to customers. A trusted partner of world leaders in the Retail, Manufacturing , Distribution, Travel, Services and Software industries, Sonata’s solution portfolio includes its own digital platforms such as Brick & Click Retail Platform, Modern Distribution Platform, Rezopia Digital Travel Platform, Kartopia E-commerce Platform, Halosys Enterprise Development Automation Platform, CTRM (Commodity Trading and Risk Management) Platform, KODO - (an AI-powered Customer Experience (CX) Platform).

Sonata’s Platformation realization services have been specifically designed so that implementation of services on Microsoft Dynamics 365, Microsoft Azure, AWS, Cloud Engineering, Managed Services as well as on new digital technologies like IoT, Artificial Intelligence, Machine Learning, Robotic Process Automation, Chatbots, Blockchain and Cybersecurity, deliver on the Platformation promise. Sonata’s people and systems are nurtured to bring together the depth of thought leadership, customer commitment and execution excellence to make a difference to business with technology

Business area of the company

The Company is engaged in business providing IT Services and Solutions to its customers in the US, Europe, Middle East, Asia Pacific and Distribution of Software Products in India.

Platformation Services

  • Platformation
  • Platform Engineering
  • Data & Analytics
  • Microsoft Dynamics
  • Advanced Technologies
  • Digital Assurance & Managed Services
  • Cloud Transformation
  • Customer Engagement and Commerce 

Awards

  • 2009: Winner in the Deloitte Technology Fast 500 Asia Pacific 2009 Program
  • 2011: Listed among Global Services Top 100 Companies for FY 2010-2011
  • 2011: Featured in Global Services’ list of Emerging Infrastructure Management Vendors and Top Speciality Product Engineering Vendors for FY 2010-2011
  • 2011: Ranked among Top 50 companies by Dataquest for FY 2010-2011
  • 2012: Ranked 6th in the Software Products segment by Zinnov Management Consulting Pvt. Ltd.
  • 2012: Sonata’s travel extensions & integrations over and above the core Hybris platform bagged Most Innovative Partner Award for the year 2012: Travel domain expertise
  • 2018: Siemens names Sonata Software the ‘Most Value-added Partner of the year 2018'
  • 2018: IBM awards ‘Best Software Partner of the Year – Commercial Segment’ to Sonata Software for the year 2018.
  • 2018: Featured in the leadership zone of service providers in two key categories - Independent Software Vendors (ISVs) and Consumer Software Service Providers by Zinnov Management Consulting Pvt. Ltd. Sonata has also been ranked as an established, niche R&D service provider on the overall front
  • 2018: Sonata Software has been assessed at CMMI Level 5 (Version 1.2-Development Model) for its development centers in Bangalore and Hyderabad
  • 2019: MS certified Platform solutions - Brick & Click and Modern Distribution 2018-19
  • 2020: UiPath has certified Sonata Software as Gold Tier Partner 2020
  • 2020: Sonata Information Technology Limited is now IBM Software - Platinum Business Partner 2020
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