Sonata Software Limited

BSE:532221 Stock Report

Market Cap: ₹174.5b

Sonata Software Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 (₹628.25) is trading above our estimate of fair value (₹410.68)

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 Ratio63.1x
Earnings₹2.76b
Market Cap₹174.48b

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 Average32.7x
532175 Cyient
29.9x17.0%₹197.1b
504067 Zensar Technologies
27.8x11.0%₹180.2b
HAPPSTMNDS Happiest Minds Technologies
47.5x25.7%₹110.2b
MASTEK Mastek
25.7x13.4%₹94.6b
532221 Sonata Software
63.1x31.3%₹174.5b

Price-To-Earnings vs Peers: 532221 is expensive based on its Price-To-Earnings Ratio (63.1x) compared to the peer average (32.7x).

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
1.2xn/aUS$23.18m
517429 Athena Global Technologies
0.7xn/aUS$16.37m
509040 Netlink Solutions (India)
3.6xn/aUS$5.71m
512341 CES
0.05xn/aUS$130.33k
No more companies available in this PE range
532221 63.1xIndustry Avg. 35.1xNo. of Companies19PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 532221 is expensive based on its Price-To-Earnings Ratio (63.1x) compared to the Indian IT industry average (35.1x).

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 Ratio63.1x
Fair PE Ratio41x

Price-To-Earnings vs Fair Ratio: 532221 is expensive based on its Price-To-Earnings Ratio (63.1x) compared to the estimated Fair Price-To-Earnings Ratio (41x).

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₹628.25
₹717.50
+14.2%
7.7%₹780.00₹600.00n/a8
Dec ’25₹626.15
₹705.71
+12.7%
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₹610.00₹606.054
Dec ’24₹683.95
₹657.17
-3.9%
5.7%₹701.50₹610.00₹626.153
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/04 08:40
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Sonata Software Limited is covered by 16 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mohit JainAnand Rathi Shares and Stock Brokers Limited
Soumitra ChatterjeeAvendus Spark
Vijayaraghavan SwaminathanAvendus Spark