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5322

Sonata Software BSE:532221 Stock Report

Last Price

₹515.50

Market Cap

₹71.4b

7D

-0.8%

1Y

-22.5%

Updated

01 Oct, 2022

Data

Company Financials +
532221 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance6/6
Financial Health5/6
Dividends5/6

532221 Stock Overview

Sonata Software Limited, together with its subsidiaries, provides information technology services and solutions in India, the United States, Europe, the Middle East, and Australia.

Sonata Software Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sonata Software
Historical stock prices
Current Share Price₹515.50
52 Week High₹772.50
52 Week Low₹457.50
Beta1.32
1 Month Change-4.99%
3 Month Change3.84%
1 Year Change-22.48%
3 Year Change125.47%
5 Year Change354.59%
Change since IPO449.87%

Recent News & Updates

Shareholder Returns

532221IN ITIN Market
7D-0.8%1.3%-1.7%
1Y-22.5%-21.9%-0.6%

Return vs Industry: 532221 matched the Indian IT industry which returned -21.9% over the past year.

Return vs Market: 532221 underperformed the Indian Market which returned -0.6% over the past year.

Price Volatility

Is 532221's price volatile compared to industry and market?
532221 volatility
532221 Average Weekly Movement4.8%
IT Industry Average Movement5.6%
Market Average Movement5.9%
10% most volatile stocks in IN Market9.2%
10% least volatile stocks in IN Market3.8%

Stable Share Price: 532221 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 532221's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19945,158Samir Dhirhttps://www.sonata-software.com

Sonata Software Limited, together with its subsidiaries, provides information technology services and solutions in India, the United States, Europe, the Middle East, and Australia. It also offers software development, technical, and product marketing services, as well as consulting services. In addition, the company delivers solutions for customers in retail, manufacturing, distribution, travel, service, and software industries through its software solutions, such as Brick & Click Retail Platform, Modern Distribution Platform, Rezopia Digital Travel Platform, Kartopia E-commerce Platform, Halosys enterprise development automation Platform, Commodity Trading and Risk Management Platform, and KODO.

Sonata Software Fundamentals Summary

How do Sonata Software's earnings and revenue compare to its market cap?
532221 fundamental statistics
Market Cap₹71.42b
Earnings (TTM)₹3.97b
Revenue (TTM)₹60.64b

18.0x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
532221 income statement (TTM)
Revenue₹60.64b
Cost of Revenue₹51.96b
Gross Profit₹8.67b
Other Expenses₹4.70b
Earnings₹3.97b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)28.69
Gross Margin14.30%
Net Profit Margin6.55%
Debt/Equity Ratio14.5%

How did 532221 perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

55%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 532221 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 532221?

Other financial metrics that can be useful for relative valuation.

532221 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA12.8x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does 532221's PE Ratio compare to its peers?

532221 PE Ratio vs Peers
The above table shows the PE ratio for 532221 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.3x
523704 Mastek
17.3x14.7%₹52.4b
19.1x13.4%₹42.3b
504067 Zensar Technologies
12.3x23.0%₹47.9b
532859 Hinduja Global Solutions
76.8xn/a₹52.8b
532221 Sonata Software
18x10.0%₹71.4b

Price-To-Earnings vs Peers: 532221 is good value based on its Price-To-Earnings Ratio (18x) compared to the peer average (31.3x).


Price to Earnings Ratio vs Industry

How does 532221's PE Ratio compare vs other companies in the IN IT Industry?

Price-To-Earnings vs Industry: 532221 is good value based on its Price-To-Earnings Ratio (18x) compared to the Indian IT industry average (23.1x)


Price to Earnings Ratio vs Fair Ratio

What is 532221's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

532221 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18x
Fair PE Ratio27x

Price-To-Earnings vs Fair Ratio: 532221 is good value based on its Price-To-Earnings Ratio (18x) compared to the estimated Fair Price-To-Earnings Ratio (27x).


Share Price vs Fair Value

What is the Fair Price of 532221 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 532221 (₹515.5) is trading above our estimate of fair value (₹472.11)

Significantly Below Fair Value: 532221 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Sonata Software forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532221's forecast earnings growth (10% per year) is above the savings rate (6.8%).

Earnings vs Market: 532221's earnings (10% per year) are forecast to grow slower than the Indian market (18.5% per year).

High Growth Earnings: 532221's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532221's revenue (10.8% per year) is forecast to grow faster than the Indian market (10.6% per year).

High Growth Revenue: 532221's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532221's Return on Equity is forecast to be high in 3 years time (34.3%)


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Past Performance

How has Sonata Software performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 532221 has high quality earnings.

Growing Profit Margin: 532221's current net profit margins (6.6%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: 532221's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: 532221's earnings growth over the past year (41.6%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: 532221 earnings growth over the past year (41.6%) exceeded the IT industry 20.7%.


Return on Equity

High ROE: 532221's Return on Equity (36.2%) is considered high.


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Financial Health

How is Sonata Software's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 532221's short term assets (₹19.4B) exceed its short term liabilities (₹12.9B).

Long Term Liabilities: 532221's short term assets (₹19.4B) exceed its long term liabilities (₹1.7B).


Debt to Equity History and Analysis

Debt Level: 532221 has more cash than its total debt.

Reducing Debt: 532221's debt to equity ratio has increased from 9.2% to 14.5% over the past 5 years.

Debt Coverage: 532221's debt is well covered by operating cash flow (282.5%).

Interest Coverage: 532221 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Sonata Software current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.06%

Current Dividend Yield

Dividend Yield vs Market

Sonata Software Dividend Yield vs Market
How does Sonata Software dividend yield compare to the market?
SegmentDividend Yield
Company (Sonata Software)3.1%
Market Bottom 25% (IN)0.4%
Market Top 25% (IN)1.6%
Industry Average (IT)2.1%
Analyst forecast in 3 Years (Sonata Software)3.5%

Notable Dividend: 532221's dividend (3.06%) is higher than the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: 532221's dividend (3.06%) is in the top 25% of dividend payers in the Indian market (1.63%)


Stability and Growth of Payments

Stable Dividend: 532221's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532221's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.9%), 532221's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (49.5%), 532221's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Samir Dhir (51 yo)

no data

Tenure

Mr. Samir Dhir serves as Chief Executive Officer at Sonata Software Limited since April 8, 2022 and serves as its Whole - Time Director. He served as Chief Executive Officer of Global Markets and Industrie...


Leadership Team

Experienced Management: 532221's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: 532221's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 532221 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BSE:532221 Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
16 Aug 22Sell₹6,562,783P. V. S. RajuIndividual12,666.67₹518.11
14 Jun 22Sell₹1,367,758Ejantkar SheelaIndividual2,666.67₹512.91
20 May 22Sell₹5,067,113P. V. S. RajuIndividual10,000₹508.87
22 Nov 21Sell₹9,019,486N SailajaIndividual14,666.67₹634.53
03 Nov 21Sell₹12,974,999P. V. S. RajuIndividual20,000₹648.75

Ownership Breakdown

What is the ownership structure of 532221?
Owner TypeNumber of SharesOwnership Percentage
State or Government430,2810.3%
Private Companies4,417,9623.2%
Institutions29,544,60121.3%
General Public51,639,95537.3%
Individual Insiders52,511,44337.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 60.98% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
22.52%
Viren Raheja
31,200,000₹16.1b0%no data
9.29%
HDFC Asset Management Company Limited
12,869,371₹6.6b24.16%0.19%
9.24%
Hemendra Kothari
12,799,993₹6.6b0%no data
4.61%
Rajan Raheja
6,383,267₹3.3b0%no data
1.9%
L&T Investment Management Limited
2,634,912₹1.4b-15.51%0.31%
1.81%
Belgrave Investment Fund
2,503,295₹1.3b0%no data
1.47%
Goldman Sachs Asset Management (India) Private Limited
2,030,552₹1.0b0%11.95%
1.16%
Palem Reddy
1,602,000₹825.8m0%no data
1.13%
ICICI Prudential Asset Management Company Limited
1,570,656₹809.7m0%0.03%
1.11%
Excelsior Construction Company Private Limited
1,533,333₹790.4m0%no data
1.04%
First International Group PLC, Asset Management Arm
1,439,961₹742.3m0%48.92%
1.01%
The Vanguard Group, Inc.
1,402,276₹722.9m0%no data
0.86%
Aditya Birla Sun Life AMC Limited
1,189,042₹613.0m0.61%0.05%
0.83%
BlackRock, Inc.
1,149,127₹592.4m-1.2%no data
0.7%
Dimensional Fund Advisors LP
976,283₹503.3m0.46%no data
0.66%
Norges Bank Investment Management
908,755₹468.5m0%no data
0.31%
Investor Education and Protection Fund (IEPF)
430,281₹221.8m-0.31%no data
0.28%
State Street Global Advisors, Inc.
387,042₹199.5m-9.96%no data
0.25%
BNY Mellon Asset Management
341,538₹176.1m2.67%no data
0.24%
AllianceBernstein L.P.
329,790₹170.0m0%no data
0.14%
Gstaad Investment & Finance Pvt Ltd
190,667₹98.3m0%no data
0.14%
Trophy Investment & Finance Pvt. Ltd.
190,667₹98.3m0%no data
0.12%
P. V. S. Raju
160,000₹82.5m-7.34%no data
0.097%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
133,872₹69.0m0%no data
0.096%
Shranutha Reddy
133,333₹68.7m0%no data

Company Information

Sonata Software Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sonata Software Limited
  • Ticker: 532221
  • Exchange: BSE
  • Founded: 1994
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: ₹71.420b
  • Shares outstanding: 138.54m
  • Website: https://www.sonata-software.com

Number of Employees


Location

  • Sonata Software Limited
  • 1/4, APS Trust Building
  • Bull Temple Road
  • Bengaluru
  • Karnataka
  • 560004
  • India


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532221BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1999
SONATSOFTWNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1999

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.