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SONATSOFTW: Global Alliance Will Expand Reach And Drive Profit Margins Higher

SONATSOFTW: Digital Alliance And AI-Driven Services Will Expand Global Market Reach

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SONATSOFTW
AnalystConsensusTarget
Not Invested
Published 07 Feb 2025

Update shared on 15 Dec 2025

Fair value Increased 4.77%
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Analysts have nudged their price target for Sonata Software higher to approximately ₹421 from about ₹401, citing slightly stronger expectations for long term revenue growth, profit margins, and a modestly higher future earnings multiple.

What's in the News

  • Sonata Software has scheduled a board meeting on November 13, 2025 to review and approve its unaudited standalone and consolidated financial results for the second quarter and half year ended September 30, 2025 (company filing)
  • The board will also consider declaring a second interim dividend for the 2025 to 26 financial year at the same November 13, 2025 meeting (company filing)
  • Sonata Software and adesso SE have entered a strategic partnership to accelerate digital transformation for enterprise clients, combining AI driven software and systems engineering capabilities with a global delivery network (company announcement)
  • The alliance aims to offer AI driven business optimisation and data analytics, scalable and agile delivery frameworks, and robust governance and compliance solutions across Europe, North America, the Middle East, and India (company announcement)

Valuation Changes

  • The Fair Value Estimate has risen slightly to about ₹421 from roughly ₹401 per share, reflecting modestly improved fundamentals.
  • The Discount Rate has inched up marginally from around 16.28 percent to approximately 16.30 percent, indicating a barely higher perceived risk or return requirement.
  • Revenue growth has increased slightly, with long term annual growth expectations moving from about 9.37 percent to roughly 9.45 percent.
  • The Net Profit Margin has edged up from close to 4.94 percent to about 4.96 percent, implying a small improvement in projected profitability.
  • The future P/E has risen moderately from roughly 25.6x to around 26.6x, suggesting a somewhat higher valuation multiple being assigned to expected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.