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Sonata Software

BSE:532221
Snowflake Description

Outstanding track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
532221
BSE
₹35B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

Sonata Software Limited, together with its subsidiaries, provides information technology services and solutions in India, the United States, Europe, and the Middle East. The last earnings update was 71 days ago. More info.


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532221 Share Price and Events
7 Day Returns
-0.4%
BSE:532221
2.6%
IN IT
0.8%
IN Market
1 Year Returns
-3.8%
BSE:532221
19.3%
IN IT
-0.7%
IN Market
532221 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sonata Software (532221) -0.4% 1% 8.6% -3.8% 119.4% 579.6%
IN IT 2.6% 4.3% 8.9% 19.3% 49% 80.2%
IN Market 0.8% 2.1% 5.8% -0.7% 41.2% 72.5%
1 Year Return vs Industry and Market
  • 532221 underperformed the IT industry which returned 19.3% over the past year.
  • 532221 underperformed the Market in India which returned -0.7% over the past year.
Price Volatility
532221
Industry
5yr Volatility vs Market

Value

 Is Sonata Software undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sonata Software to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sonata Software.

BSE:532221 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 16.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:532221
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 35%) (0.59%))
1.039
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.039 * 8.6%)
16.49%

Discounted Cash Flow Calculation for BSE:532221 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sonata Software is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:532221 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 16.49%)
2019 1,951.67 Analyst x3 1,675.44
2020 2,566.67 Analyst x3 1,891.54
2021 2,803.50 Analyst x2 1,773.65
2022 3,040.21 Est @ 8.44% 1,651.18
2023 3,288.76 Est @ 8.18% 1,533.36
2024 3,551.45 Est @ 7.99% 1,421.48
2025 3,830.47 Est @ 7.86% 1,316.16
2026 4,127.89 Est @ 7.76% 1,217.61
2027 4,445.74 Est @ 7.7% 1,125.76
2028 4,786.07 Est @ 7.66% 1,040.41
Present value of next 10 years cash flows ₹14,646.59
BSE:532221 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹4,786.07 × (1 + 7.55%) ÷ (16.49% – 7.55%)
₹57,596.63
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹57,596.63 ÷ (1 + 16.49%)10
₹12,520.52
BSE:532221 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹14,646.59 + ₹12,520.52
₹27,167.10
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹27,167.10 / 105.16
₹258.34
BSE:532221 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹258.34
Current discount Discount to share price of ₹333.00
= -1 x (₹333.00 - ₹258.34) / ₹258.34
-28.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sonata Software is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sonata Software's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sonata Software's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:532221 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹22.99
BSE:532221 Share Price ** BSE (2019-04-18) in INR ₹333
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 16.19x
India Market PE Ratio Median Figure of 2,738 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sonata Software.

BSE:532221 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532221 Share Price ÷ EPS (both in INR)

= 333 ÷ 22.99

14.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sonata Software is good value based on earnings compared to the IN IT industry average.
  • Sonata Software is good value based on earnings compared to the India market.
Price based on expected Growth
Does Sonata Software's expected growth come at a high price?
Raw Data
BSE:532221 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
13.8%per year
India IT Industry PEG Ratio Median Figure of 21 Publicly-Listed IT Companies 1.32x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

BSE:532221 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.48x ÷ 13.8%

1.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sonata Software is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sonata Software's assets?
Raw Data
BSE:532221 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹64.94
BSE:532221 Share Price * BSE (2019-04-18) in INR ₹333
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.36x
India Market PB Ratio Median Figure of 3,628 Publicly-Listed Companies 1.11x
BSE:532221 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532221 Share Price ÷ Book Value per Share (both in INR)

= 333 ÷ 64.94

5.13x

* Primary Listing of Sonata Software.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sonata Software is overvalued based on assets compared to the IN IT industry average.
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Value checks
We assess Sonata Software's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Sonata Software has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sonata Software expected to grow at an attractive rate?
  • Sonata Software's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Sonata Software's earnings growth is positive but not above the India market average.
  • Sonata Software's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
BSE:532221 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:532221 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 13.8%
BSE:532221 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 12.1%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:532221 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:532221 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 36,494 2,954 3,246 3
2020-03-31 33,027 2,627 2,792 4
2019-03-31 29,088 1,971 2,476 3
BSE:532221 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 27,512 2,388
2018-09-30 26,739 2,240
2018-06-30 25,077 2,071
2018-03-31 24,539 2,978 1,925
2017-12-31 26,643 1,709
2017-09-30 24,726 1,619
2017-06-30 25,463 1,533
2017-03-31 23,708 1,845 1,563
2016-12-31 23,538 1,541
2016-09-30 22,632 1,557
2016-06-30 21,391 1,572
2016-03-31 19,405 1,582 1,586

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sonata Software's earnings are expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
  • Sonata Software's revenue is expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:532221 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Sonata Software Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532221 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 31.40 32.10 30.70 2.00
2020-03-31 26.90 29.00 24.70 3.00
2019-03-31 23.90 24.20 23.60 2.00
BSE:532221 Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 22.99
2018-09-30 21.56
2018-06-30 19.94
2018-03-31 18.54
2017-12-31 16.24
2017-09-30 15.39
2017-06-30 14.58
2017-03-31 15.07
2016-12-31 14.65
2016-09-30 14.81
2016-06-30 14.95
2016-03-31 15.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sonata Software is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Sonata Software's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sonata Software has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Sonata Software performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sonata Software's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sonata Software's year on year earnings growth rate has been positive over the past 5 years.
  • Sonata Software's 1-year earnings growth exceeds its 5-year average (39.7% vs 17.5%)
  • Sonata Software's earnings growth has exceeded the IN IT industry average in the past year (39.7% vs 24.5%).
Earnings and Revenue History
Sonata Software's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sonata Software Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532221 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 27,511.50 2,387.60 323.50
2018-09-30 26,739.40 2,240.00 323.50
2018-06-30 25,077.30 2,071.40 323.50
2018-03-31 24,539.40 1,925.30 323.50
2017-12-31 26,642.54 1,709.25 318.12
2017-09-30 24,726.06 1,619.35 318.12
2017-06-30 25,462.52 1,533.45 318.12
2017-03-31 23,707.80 1,563.00 321.70
2016-12-31 23,537.57 1,541.30 279.18
2016-09-30 22,631.68 1,557.05 279.18
2016-06-30 21,391.30 1,572.17 279.18
2016-03-31 19,405.01 1,585.91 279.18
2015-12-31 17,922.08 1,525.92 1,063.06
2015-09-30 17,370.83 1,480.72 1,063.06
2015-06-30 17,441.65 1,398.52 1,063.06
2015-03-31 16,821.28 1,336.97 271.72
2014-12-31 16,303.15 1,224.31 1,131.24
2014-09-30 15,503.45 1,083.44 1,131.24
2014-06-30 15,698.44 952.84 1,131.24
2014-03-31 15,657.97 777.67 1,125.48
2013-12-31 14,841.60 611.67 840.49
2013-09-30 14,925.19 481.98 840.49
2013-06-30 13,225.53 41.62 840.49
2013-03-31 13,109.43 300.01 753.13
2012-12-31 13,736.70 -486.67 2,187.39
2012-09-30 15,051.70 -641.91 2,187.39
2012-06-30 16,354.60 -291.22 2,187.39

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sonata Software has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Sonata Software used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
  • Sonata Software has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sonata Software's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sonata Software has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Sonata Software's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sonata Software's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sonata Software is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sonata Software's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sonata Software's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 45.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sonata Software Company Filings, last reported 3 months ago.

BSE:532221 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 6,738.40 207.80 3,312.70
2018-09-30 6,738.40 207.80 3,312.70
2018-06-30 6,532.60 337.30 4,713.40
2018-03-31 6,532.60 337.30 4,713.40
2017-12-31 5,967.66 289.23 2,869.79
2017-09-30 5,967.66 289.23 2,869.79
2017-06-30 5,845.90 541.71 3,655.33
2017-03-31 5,907.50 552.20 2,141.90
2016-12-31 5,451.71 1,492.44 2,958.69
2016-09-30 5,451.71 1,492.44 2,958.69
2016-06-30 4,709.92 1,760.28 3,474.95
2016-03-31 4,709.92 1,760.28 3,474.66
2015-12-31 4,967.85 686.87 2,810.31
2015-09-30 4,967.85 686.87 2,810.31
2015-06-30 4,284.31 244.25 2,639.17
2015-03-31 4,284.31 244.25 2,636.59
2014-12-31 4,145.11 754.57 1,855.97
2014-09-30 4,145.11 754.57 1,855.97
2014-06-30 3,744.06 56.95 2,451.24
2014-03-31 3,744.06 56.95 2,441.42
2013-12-31 3,655.05 0.00 1,341.87
2013-09-30 3,655.05 0.00 1,341.87
2013-06-30 3,417.86 167.82 1,572.62
2013-03-31 3,417.86 167.82 1,572.62
2012-12-31 3,302.28 434.93 605.25
2012-09-30 3,302.28 434.93 605.25
2012-06-30 3,797.10 433.32 1,437.38
  • Sonata Software's level of debt (3.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 3.1% today).
  • Debt is well covered by operating cash flow (1433%, greater than 20% of total debt).
  • Sonata Software earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Sonata Software's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sonata Software has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.45%
Current annual income from Sonata Software dividends. Estimated to be 4.66% next year.
If you bought ₹2,000 of Sonata Software shares you are expected to receive ₹69 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sonata Software's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Sonata Software's dividend is above the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:532221 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:532221 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 16.47 3.00
2020-03-31 14.80 4.00
2019-03-31 13.73 3.00
BSE:532221 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-11-02 11.500 3.576
2018-05-22 10.500 3.156
2017-11-13 9.250 3.205
2017-07-18 9.000 5.607
2016-11-02 9.000 5.278
2016-03-09 9.000 5.821
2015-11-06 7.750 4.855
2015-05-19 5.250 3.607
2014-09-08 3.750 2.689
2014-07-11 3.750 4.401
2014-05-26 3.750 5.400
2013-11-12 2.250 5.350
2013-07-08 1.750 6.444
2013-05-30 1.750 6.619
2012-11-12 0.750 3.001
2012-07-25 0.500 2.402
2011-11-03 1.500 7.151
2011-04-20 2.000 5.740
2010-11-10 1.800 4.271
2010-04-19 1.600 3.107
2010-01-20 1.800 3.143
2009-10-14 1.800 4.570
2009-07-17 0.000 0.000
2009-05-12 0.000 0.000
2009-04-21 1.100 5.198

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Sonata Software's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Sonata Software's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sonata Software afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sonata Software has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Sonata Software's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Palem Reddy
COMPENSATION ₹53,276,005
AGE 60
TENURE AS CEO 7.2 years
CEO Bio

Mr. Palem Srikar Reddy, BE (Electrical), PGDBM (IIM), has been the Managing Director and Chief Executive Officer of Sonata Software Limited since February 14, 2012. Mr. Reddy serves as an Executive Director of Sonata Software Ltd., Sonata Software FZ-LLC., Sonata Information Technology Limited and Abisko Development Limited. He served as the Chief Operating Officer of Sonata Software Ltd. until February 16, 2012 and served as its Deputy Managing Director from August 17, 2011 to February 16, 2012. Mr. Reddy served as the President, Executive Vice President and Senior Vice President of Sonata Software Ltd. Mr. Reddy has been employed with Sonata since inception in April 1986, during which he has handled various assignments ranging from Software architect to Project Management Marketing & Sales. He serves as Chairman of Interactive Business Information Systems, Inc. Mr. Reddy is an invited speaker in many IT forums on a wide variety of topics from IT strategy, Supply chain Management, Opportunities for Indian Offshore Companies. He is a graduate in engineering from Regional engineering college Trichy and Post Graduate in Management from Indian Institute of Management, Calcutta.

CEO Compensation
  • Palem's compensation has increased by more than 20% in the past year.
  • Palem's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Sonata Software management team in years:

2.2
Average Tenure
53
Average Age
  • The tenure for the Sonata Software management team is about average.
Management Team

Palem Reddy

TITLE
CEO, MD & Executive Director
COMPENSATION
₹53M
AGE
60
TENURE
7.2 yrs

Prasanna Oke

TITLE
Chief Financial Officer
TENURE
3.9 yrs

Vikas Gurugunti

TITLE
COO & Head of Americas
TENURE
1.5 yrs

R. Sathyanarayana

TITLE
Vice President of Finance & Accounts
COMPENSATION
₹3M
AGE
53

Rashmi Shirke

TITLE
Compliance Officer & Assistant Company Secretary
TENURE
0.1 yrs

Amit Tyagi

TITLE
Chief Marketing Officer
TENURE
2.2 yrs

Madhavi Srinivas

TITLE
Chief Human Resources Officer
TENURE
5.5 yrs

P. Raju

TITLE
Chief Delivery Officer
COMPENSATION
₹9M
AGE
53
TENURE
3.3 yrs

Sujit Mohanty

TITLE
Head of Sonata India Business
COMPENSATION
₹7M
AGE
51
TENURE
0.3 yrs

Raj Roy

TITLE
Global Head of Microsoft Dynamics
COMPENSATION
₹3M
AGE
48
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Sonata Software board of directors in years:

5.4
Average Tenure
64.5
Average Age
  • The tenure for the Sonata Software board of directors is about average.
Board of Directors

Pradip Shah

TITLE
Chairman
COMPENSATION
₹4M
AGE
65

Palem Reddy

TITLE
CEO, MD & Executive Director
COMPENSATION
₹53M
AGE
60

Suresh Talwar

TITLE
Independent Director
COMPENSATION
₹4M
AGE
81

Brijendra Syngal

TITLE
Independent Director
COMPENSATION
₹4M
AGE
77
TENURE
15.3 yrs

Shyam Ghia

TITLE
Non-Executive Director
COMPENSATION
₹4M
AGE
70

Jnan Dash

TITLE
Member of Advisory Board
TENURE
5.4 yrs

Viren Raheja

TITLE
Non-Executive Director
COMPENSATION
₹4M
AGE
34
TENURE
11 yrs

Sriram Dasu

TITLE
Member of Advisory Board
TENURE
5.4 yrs

Radhika Rajan

TITLE
Non-Executive Independent Director
COMPENSATION
₹4M
AGE
62
TENURE
4.7 yrs

Ken Cutshaw

TITLE
Member of Advisory Board
AGE
64
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
26. Feb 19 Sell Bhupati Investments and Finance Pvt. Ltd. Company 20. Feb 19 21. Feb 19 -8,851 ₹348.96 ₹-3,088,651
24. Oct 18 Sell Mohammed Ajmal Individual 04. Sep 18 04. Sep 18 -10,000 ₹359.00 ₹-3,590,014
11. Sep 18 Sell Prasanna Oke Individual 06. Sep 18 07. Sep 18 -15,000 ₹365.73 ₹-5,485,988
06. Sep 18 Sell Sujit Mohanty Individual 04. Sep 18 05. Sep 18 -9,000 ₹355.73 ₹-3,201,572
04. Sep 18 Sell Sujit Mohanty Individual 28. Aug 18 31. Aug 18 -6,000 ₹357.82 ₹-2,132,817
30. Aug 18 Sell P. Raju Individual 28. Aug 18 29. Aug 18 -10,000 ₹348.50 ₹-3,480,500
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Management checks
We assess Sonata Software's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sonata Software has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Value-Adding Stocks To Buy Now

Companies such as Sonata Software and Sanofi India are potentially attractive investments. … Sonata Software Limited (BSE:532221) Sonata Software Limited provides information technology services and solutions to its customers in India, the United States, Europe, and the Middle East. … Started in 1956, and currently run by Shailesh Ayyangar, the company provides employment to 3,239 people and with the stock's market cap sitting at INR ₹119.54B, it comes under the large-cap group.

Simply Wall St -

How Does Sonata Software Limited's (BOM:532221) Earnings Growth Stack Up Against Industry Performance?

In this article, I will take a look at Sonata Software Limited's (BOM:532221) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Did 532221's recent earnings growth beat the long-term trend and the industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 29.33%, indicating the rate at which 532221 is growing has slowed down

Simply Wall St -

Top Stocks This Week

532221 has ample cash coverage over its short term liabilities, and its debt is adequately covered by its operating cash, which indicates its strong financial position. … 501455 has ample cash coverage over its short term liabilities, and the business has no debt on its books, which indicates its strong financial position. … In addition to this, 523367 has ample cash coverage over its short term liabilities, and its debt is adequately covered by its operating cash, which indicates its strong financial position.

Simply Wall St -

Company Info

Description

Sonata Software Limited, together with its subsidiaries, provides information technology services and solutions in India, the United States, Europe, and the Middle East. Its services include software development, technical, and product marketing services, as well as consulting services. The company delivers solutions for customers travel, retail, distribution, and software product companies, as well as for independent software vendors through IP based platforms, products, and services that integrate new digital platforms, such as Rezopia, Brick and Click Retail, Travel, and Modern distribution. It also provides digital engagement, application lifecycle services; and technology infrastructure services; and resells product licenses of software companies. The company has strategic alliances with Microsoft, Oracle, SAP/Hybris, HP, and IBM. Sonata Software Limited was incorporated in 1994 and is headquartered in Bengaluru, India.

Details
Name: Sonata Software Limited
532221
Exchange: BSE
Founded: 1994
₹35,018,048,898
105,159,306
Website: http://www.sonata-software.com
Address: Sonata Software Limited
1/4, APS Trust Building,
Bull Temple Road,
Bengaluru,
Karnataka, 560019,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532221 Equity Shares Mumbai Stock Exchange IN INR 28. Jul 1999
NSEI SONATSOFTW Equity Shares National Stock Exchange of India IN INR 28. Jul 1999
Number of employees
Current staff
Staff numbers
3,476
Sonata Software employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 12:35
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/08
Last earnings filing: 2019/02/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.