Sonata Software Limited

BSE:532221 Stock Report

Market Cap: ₹152.2b

Sonata Software Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 (₹549) is trading above our estimate of fair value (₹372.26)

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

Key Valuation Metric

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

Key metric: As 532221 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 532221. This is calculated by dividing 532221's market cap by their current earnings.
What is 532221's PE Ratio?
PE Ratio55.1x
Earnings₹2.76b
Market Cap₹152.24b

Price to Earnings Ratio vs Peers

How does 532221's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.3x
532175 Cyient
30.3x17.4%₹199.9b
HAPPSTMNDS Happiest Minds Technologies
46.4x24.8%₹107.7b
504067 Zensar Technologies
25.4x10.9%₹164.6b
MASTEK Mastek
27.1x13.4%₹99.6b
532221 Sonata Software
55.1x31.3%₹152.2b

Price-To-Earnings vs Peers: 532221 is expensive based on its Price-To-Earnings Ratio (55.1x) compared to the peer average (32.3x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTL GTL
1.1xn/aUS$22.05m
517429 Athena Global Technologies
0.6xn/aUS$15.78m
509040 Netlink Solutions (India)
3.2xn/aUS$5.10m
512341 CES
0.05xn/aUS$130.33k
No more companies available in this PE range
532221 55.1xIndustry Avg. 37.0xNo. of Companies18PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 532221 is expensive based on its Price-To-Earnings Ratio (55.1x) compared to the Indian IT industry average (37x).

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 Ratio55.1x
Fair PE Ratio40.4x

Price-To-Earnings vs Fair Ratio: 532221 is expensive based on its Price-To-Earnings Ratio (55.1x) compared to the estimated Fair Price-To-Earnings Ratio (40.4x).

Analyst Price Targets

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

The above table shows the analyst 532221 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹549.00
₹705.71
+28.5%
7.6%₹760.00₹600.00n/a7
Nov ’25₹615.25
₹724.86
+17.8%
8.3%₹780.00₹600.00n/a7
Oct ’25₹634.65
₹730.57
+15.1%
8.2%₹780.00₹600.00n/a7
Sep ’25₹665.95
₹722.71
+8.5%
8.5%₹780.00₹600.00n/a7
Aug ’25₹663.95
₹684.67
+3.1%
10.4%₹780.00₹600.00n/a6
Jul ’25₹620.80
₹665.50
+7.2%
10.2%₹770.00₹600.00n/a6
Jun ’25₹515.00
₹665.50
+29.2%
10.2%₹770.00₹600.00n/a6
May ’25₹690.15
₹844.17
+22.3%
9.3%₹915.00₹700.00n/a6
Apr ’25₹714.65
₹834.17
+16.7%
10.7%₹915.00₹690.00n/a6
Mar ’25₹819.20
₹843.75
+3.0%
10.7%₹915.00₹690.00n/a4
Feb ’25₹764.70
₹741.63
-3.0%
13.7%₹915.00₹660.00n/a4
Jan ’25₹722.95
₹721.63
-0.2%
16.1%₹915.00₹610.00n/a4
Dec ’24₹683.95
₹657.17
-3.9%
5.7%₹701.50₹610.00n/a3
Nov ’24₹572.88
₹614.67
+7.3%
5.7%₹660.00₹574.00₹615.253
Oct ’24₹528.50
₹540.38
+2.2%
15.0%₹640.00₹417.50₹634.654
Sep ’24₹521.35
₹532.88
+2.2%
13.6%₹610.00₹417.50₹665.954
Aug ’24₹522.80
₹532.88
+1.9%
13.6%₹610.00₹417.50₹663.954
Jul ’24₹504.05
₹495.38
-1.7%
10.6%₹564.00₹417.50₹620.804
Jun ’24₹493.65
₹495.38
+0.3%
10.6%₹564.00₹417.50₹515.004
May ’24₹427.18
₹377.50
-11.6%
13.0%₹425.00₹289.00₹690.155
Apr ’24₹418.70
₹377.50
-9.8%
13.0%₹425.00₹289.00₹714.655
Mar ’24₹384.95
₹377.50
-1.9%
13.0%₹425.00₹289.00₹819.205
Feb ’24₹310.33
₹312.33
+0.6%
14.1%₹366.00₹260.00₹764.706
Jan ’24₹281.35
₹297.75
+5.8%
11.0%₹350.00₹260.00₹722.956
Dec ’23₹292.45
₹287.30
-1.8%
8.7%₹330.00₹260.00₹683.955
Nov ’23₹259.88
₹287.30
+10.6%
8.7%₹330.00₹260.00₹572.885

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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