Sonata Software Limited

NSEI:SONATSOFTW Stock Report

Market Cap: ₹98.4b

Sonata Software Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 SONATSOFTW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
₹297.41
Fair Value
19.2% overvalued intrinsic discount
8
Number of Analysts

Below Fair Value: SONATSOFTW (₹354.65) is trading above our estimate of fair value (₹297.41)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SONATSOFTW. This is calculated by dividing SONATSOFTW's market cap by their current earnings.
What is SONATSOFTW's PE Ratio?
PE Ratio23x
Earnings₹4.28b
Market Cap₹98.43b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SONATSOFTW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.9x
HAPPSTMNDS Happiest Minds Technologies
43.1x28.9%₹96.0b
532175 Cyient
21.4x18.5%₹136.0b
MASTEK Mastek
19.5x13.1%₹75.5b
504067 Zensar Technologies
23.4x13.3%₹151.5b
SONATSOFTW Sonata Software
23x22.9%₹98.4b

Price-To-Earnings vs Peers: SONATSOFTW is good value based on its Price-To-Earnings Ratio (23x) compared to the peer average (26.9x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTL GTL
1.1xn/aUS$15.05m
517429 Athena Global Technologies
0.5xn/aUS$12.24m
509040 Netlink Solutions (India)
2.4xn/aUS$3.32m
QUICKTOUCH Quicktouch Technologies
4.8xn/aUS$2.99m
SONATSOFTW 23.0xIndustry Avg. 25.0xNo. of Companies17PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SONATSOFTW is good value based on its Price-To-Earnings Ratio (23x) compared to the Indian IT industry average (24.8x).

Price to Earnings Ratio vs Fair Ratio

What is SONATSOFTW'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.

SONATSOFTW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23x
Fair PE Ratio29.6x

Price-To-Earnings vs Fair Ratio: SONATSOFTW is good value based on its Price-To-Earnings Ratio (23x) compared to the estimated Fair Price-To-Earnings Ratio (29.6x).

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 SONATSOFTW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹354.65
₹631.75
+78.1%
11.4%₹760.00₹517.00n/a8
Mar ’26₹361.00
₹631.75
+75.0%
11.4%₹760.00₹517.00n/a8
Feb ’26₹537.55
₹715.25
+33.1%
7.5%₹780.00₹600.00n/a8
Jan ’26₹605.30
₹716.25
+18.3%
7.7%₹780.00₹600.00n/a8
Dec ’25₹625.90
₹705.71
+12.8%
7.6%₹760.00₹600.00n/a7
Nov ’25₹615.50
₹724.86
+17.8%
8.3%₹780.00₹600.00n/a7
Oct ’25₹634.85
₹730.57
+15.1%
8.2%₹780.00₹600.00n/a7
Sep ’25₹665.75
₹722.71
+8.6%
8.5%₹780.00₹600.00n/a7
Aug ’25₹664.15
₹684.67
+3.1%
10.4%₹780.00₹600.00n/a6
Jul ’25₹621.50
₹665.50
+7.1%
10.2%₹770.00₹600.00n/a6
Jun ’25₹515.25
₹665.50
+29.2%
10.2%₹770.00₹600.00n/a6
May ’25₹691.15
₹844.17
+22.1%
9.3%₹915.00₹700.00n/a6
Apr ’25₹716.15
₹834.17
+16.5%
10.7%₹915.00₹690.00n/a6
Mar ’25₹817.30
₹843.75
+3.2%
10.7%₹915.00₹690.00₹361.004
Feb ’25₹764.65
₹741.63
-3.0%
13.7%₹915.00₹660.00₹537.554
Jan ’25₹722.90
₹721.63
-0.2%
16.1%₹915.00₹610.00₹605.304
Dec ’24₹684.43
₹657.17
-4.0%
5.7%₹701.50₹610.00₹625.903
Nov ’24₹572.10
₹614.67
+7.4%
5.7%₹660.00₹574.00₹615.503
Oct ’24₹528.90
₹540.38
+2.2%
15.0%₹640.00₹417.50₹634.854
Sep ’24₹521.33
₹532.88
+2.2%
13.6%₹610.00₹417.50₹665.754
Aug ’24₹523.48
₹532.88
+1.8%
13.6%₹610.00₹417.50₹664.154
Jul ’24₹504.73
₹495.38
-1.9%
10.6%₹564.00₹417.50₹621.504
Jun ’24₹493.58
₹495.38
+0.4%
10.6%₹564.00₹417.50₹515.254
May ’24₹427.38
₹377.50
-11.7%
13.0%₹425.00₹289.00₹691.155
Apr ’24₹418.15
₹377.50
-9.7%
13.0%₹425.00₹289.00₹716.155
Mar ’24₹385.48
₹377.50
-2.1%
13.0%₹425.00₹289.00₹817.305
Analyst Price Target
Consensus Narrative from 8 Analysts
₹631.75
Fair Value
43.9% undervalued intrinsic discount
8
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/03/18 08:22
End of Day Share Price 2025/03/18 00:00
Earnings2024/12/31
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.

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 Github.

Analyst Sources

Sonata Software Limited is covered by 18 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
null nullAnand Rathi Shares and Stock Brokers Limited
Vijayaraghavan SwaminathanAvendus Spark