Sonata Software
Market Cap
₹61.3b
Last Updated
2021/04/12 12:11 UTC
Data Sources
Company Financials +
Executive Summary
Sonata Software Limited, together with its subsidiaries, provides information technology services and solutions in India, the United States, Europe, Australia, and the Middle East. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet average dividend payer.
Share Price & News
How has Sonata Software's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SONATSOFTW is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: SONATSOFTW's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
9.7%
SONATSOFTW
0.4%
IN IT
-2.4%
IN Market
1 Year Return
222.4%
SONATSOFTW
106.4%
IN IT
66.7%
IN Market
Return vs Industry: SONATSOFTW exceeded the Indian IT industry which returned 106.4% over the past year.
Return vs Market: SONATSOFTW exceeded the Indian Market which returned 66.7% over the past year.
Shareholder returns
| SONATSOFTW | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.7% | 0.4% | -2.4% |
| 30 Day | 13.8% | 4.9% | -4.1% |
| 90 Day | 35.1% | 1.4% | 1.3% |
| 1 Year | 226.1%222.4% | 109.5%106.4% | 69.3%66.7% |
| 3 Year | 96.3%72.1% | 120.9%107.7% | 21.1%15.1% |
| 5 Year | 359.9%274.8% | 162.5%137.6% | 76.9%63.4% |
Long-Term Price Volatility Vs. Market
How volatile is Sonata Software's share price compared to the market and industry in the last 5 years?
Simply Wall St News
8 hours ago | Simply Wall St
At ₹573, Is It Time To Put Sonata Software Limited (NSE:SONATSOFTW) On Your Watch List?2 weeks ago | Simply Wall St
Capital Investment Trends At Sonata Software (NSE:SONATSOFTW) Look Strong4 weeks ago | Simply Wall St
Are Robust Financials Driving The Recent Rally In Sonata Software Limited's (NSE:SONATSOFTW) Stock?Valuation
Is Sonata Software undervalued compared to its fair value and its price relative to the market?
27.51x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SONATSOFTW (₹573) is trading above our estimate of fair value (₹284.88)
Significantly Below Fair Value: SONATSOFTW is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SONATSOFTW is poor value based on its PE Ratio (27.5x) compared to the IN IT industry average (23.6x).
PE vs Market: SONATSOFTW is poor value based on its PE Ratio (27.5x) compared to the Indian market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: SONATSOFTW is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: SONATSOFTW is overvalued based on its PB Ratio (7.6x) compared to the IN IT industry average (1.2x).
Future Growth
How is Sonata Software forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
21.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SONATSOFTW's forecast earnings growth (21.1% per year) is above the savings rate (7%).
Earnings vs Market: SONATSOFTW's earnings (21.1% per year) are forecast to grow slower than the Indian market (24.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SONATSOFTW's revenue (9% per year) is forecast to grow slower than the Indian market (14.1% per year).
High Growth Revenue: SONATSOFTW's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SONATSOFTW's Return on Equity is forecast to be high in 3 years time (34.1%)
Past Performance
How has Sonata Software performed over the past 5 years?
13.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SONATSOFTW has high quality earnings.
Growing Profit Margin: SONATSOFTW's current net profit margins (5.5%) are lower than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: SONATSOFTW's earnings have grown by 13.3% per year over the past 5 years.
Accelerating Growth: SONATSOFTW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SONATSOFTW had negative earnings growth (-20.6%) over the past year, making it difficult to compare to the IT industry average (-3.7%).
Return on Equity
High ROE: SONATSOFTW's Return on Equity (27.6%) is considered high.
Financial Health
How is Sonata Software's financial position?
Financial Position Analysis
Short Term Liabilities: SONATSOFTW's short term assets (₹13.5B) exceed its short term liabilities (₹9.3B).
Long Term Liabilities: SONATSOFTW's short term assets (₹13.5B) exceed its long term liabilities (₹1.1B).
Debt to Equity History and Analysis
Debt Level: SONATSOFTW's debt to equity ratio (15.3%) is considered satisfactory.
Reducing Debt: SONATSOFTW's debt to equity ratio has increased from 14.3% to 15.3% over the past 5 years.
Debt Coverage: SONATSOFTW's debt is well covered by operating cash flow (447.7%).
Interest Coverage: SONATSOFTW's interest payments on its debt are well covered by EBIT (63.1x coverage).
Balance Sheet
Dividend
What is Sonata Software current dividend yield, its reliability and sustainability?
3.14%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SONATSOFTW's dividend (3.14%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).
High Dividend: SONATSOFTW's dividend (3.14%) is in the top 25% of dividend payers in the Indian market (1.91%)
Stability and Growth of Payments
Stable Dividend: SONATSOFTW's dividend payments have been volatile in the past 10 years.
Growing Dividend: SONATSOFTW's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: Unable to calculate sustainability of dividends as SONATSOFTW has not reported any payouts.
Future Payout to Shareholders
Future Dividend Coverage: SONATSOFTW's dividends in 3 years are forecast to be covered by earnings (54.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Palem Reddy (62 yo)
9.17yrs
Tenure
₹39,700,000
Compensation
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 Directo...
CEO Compensation Analysis
Compensation vs Market: Palem's total compensation ($USD531.12K) is above average for companies of similar size in the Indian market ($USD381.05K).
Compensation vs Earnings: Palem's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SONATSOFTW's management team is considered experienced (3.9 years average tenure).
Board Members
Experienced Board: SONATSOFTW's board of directors are considered experienced (7.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SONATSOFTW insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Sonata Software Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Sonata Software Limited
- Ticker: SONATSOFTW
- Exchange: NSEI
- Founded: 1994
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: ₹61.269b
- Shares outstanding: 103.91m
- 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
Biography
Sonata Software Limited, together with its subsidiaries, provides information technology services and solutions in India, the United States, Europe, Australia, and the Middle East. It also offers software ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/12 12:11 |
| End of Day Share Price | 2021/04/12 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
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.