ScoreWhy is Sonata Software Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 31.02%
- Healthy long term growth as Net Sales has grown by an annual rate of 20.41%
- Company has a low Debt to Equity ratio (avg) at 0.01 times
2
Positive results in Dec 25
- PAT(Q) Highest at Rs 127.55 cr.
- DEBTORS TURNOVER RATIO(HY) Highest at 5.93 times
- NET SALES(Q) Highest at Rs 3,080.58 cr
3
Technical trend is Sideways signifying no clear price momentum
- The technical trend has improved from Mildly Bearish on 17-Jun-26 and has generated 0.93% returns since then
4
With ROCE of 31.5, it has a Fair valuation with a 4.3 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 -25.87%, its profits have risen by 20.5% ; the PEG ratio of the company is 0.8
5
High Institutional Holdings at 34.29%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
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
-25.76%
-0.57
45.19%
Sensex
-5.12%
-0.39
13.26%
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
17
Industry P/E
21
Price to Book Value
4.50
EV to EBIT
13.64
EV to EBITDA
11.72
EV to Capital Employed
4.29
EV to Sales
0.81
PEG Ratio
0.82
Dividend Yield
2.67%
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
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
PAT(Q)
Highest at Rs 127.55 cr.
DEBTORS TURNOVER RATIO(HY)
Highest at 5.93 times
NET SALES(Q)
Highest at Rs 3,080.58 cr
PBDIT(Q)
Highest at Rs 200.20 cr.
PBT LESS OI(Q)
Highest at Rs 160.67 cr.
-7What is not working for the Company
ROCE(HY)
Lowest at 25.85%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 243.10 cr
EPS(Q)
Lowest at Rs 3.76
Loading Valuation Snapshot...
Here's what is working for Sonata Software
Profit After Tax (PAT) - Quarterly
Highest at Rs 127.55 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 3,080.58 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 200.20 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 160.67 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 160.67 cr has Grown at 24.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 128.90 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 5.93 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Sonata Software
Earnings per Share (EPS) - Quarterly
Lowest at Rs 3.76
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 243.10 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
