Update shared on03 Oct 2025
Fair value Decreased 2.95%Narrative Update on Sonata Software: Analyst Price Target Revision
Analysts have revised their price target for Sonata Software downward by approximately ₹13. They now cite tempered growth and margin expectations as the primary reasons for this adjustment.
What's in the News
- Sonata Software has partnered with the Wharton AI & Analytics Initiative at the Wharton School of the University of Pennsylvania to advance research and innovation in agentic AI for enterprise adoption. (Key Developments)
- The partnership with Wharton will include collaborative evaluation of AI systems focused on governance, compliance, and human-AI collaboration, as well as architecture refinement for Sonata's AgentBridge platform with robust ethical safeguards. (Key Developments)
- Sonata Software and Wharton will co-host an academic convening in Fall 2025, bringing together experts from academia and industry. Insights from this event will inform a white paper on responsible AI deployment. (Key Developments)
- The company recently collaborated with the Indian Institute of Science to boost AI-driven scientific research and further its commitment to responsible AI practices. (Key Developments)
- The Board of Sonata Software is scheduled to meet on July 30, 2025, to review financial results for the quarter ending June 30, 2025, and consider an interim dividend. (Key Developments)
Valuation Changes
- Fair Value Estimate: Decreased from ₹436.43 to ₹423.57, reflecting a slight reduction in projected worth.
- Discount Rate: Increased slightly from 16.07% to 16.17%, indicating a marginal rise in the required rate of return.
- Revenue Growth: Lowered from 9.97% to 9.81%, indicating more cautious expectations for revenue expansion.
- Net Profit Margin: Decreased from 4.96% to 4.86%, reflecting moderated optimism on profitability.
- Future P/E Ratio: Slightly reduced from 27.13x to 27.10x, representing a minor change in forward valuation multiples.
Disclaimer
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