ScoreWhy is Sonata Software Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 31.02%
- Healthy long term growth as Net Sales has grown by an annual rate of 20.41%
- Company has a low Debt to Equity ratio (avg) at 0.01 times
2
Positive results in Mar 26
- PAT(Q) Highest at Rs 154.71 cr.
- PBDIT(Q) Highest at Rs 208.69 cr.
- OPERATING PROFIT TO NET SALES(Q) Highest at 8.23%
3
Stock is technically in a Mildly Bearish range
- The stocks MACD and KST technical factors are also Bearish
4
With ROCE of 31.5, it has a Fair valuation with a 3.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -30.61%, its profits have risen by 20.5% ; the PEG ratio of the company is 0.7
5
High Institutional Holdings at 34.29%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -30.61% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Sonata Software should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sonata Software for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sonata Software
1.21%
-0.73
41.77%
Sensex
-3.04%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.37%
EBIT Growth (5y)
12.21%
EBIT to Interest (avg)
14.24
Debt to EBITDA (avg)
0.77
Net Debt to Equity (avg)
0.06
Sales to Capital Employed (avg)
4.25
Tax Ratio
24.28%
Dividend Payout Ratio
28.76%
Pledged Shares
0
Institutional Holding
33.84%
ROCE (avg)
56.85%
ROE (avg)
31.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
22
Price to Book Value
4.92
EV to EBIT
14.69
EV to EBITDA
12.61
EV to Capital Employed
4.69
EV to Sales
0.86
PEG Ratio
0.96
Dividend Yield
1.99%
ROCE (Latest)
31.48%
ROE (Latest)
26.87%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
PAT(Latest six months)
At Rs 262.82 cr has Grown at 21.19%
NET SALES(Q)
Highest at Rs 3,279.10 cr
-4What is not working for the Company
PBT LESS OI(Q)
At Rs 130.32 cr has Fallen at -11.0% (vs previous 4Q average
PAT(Q)
At Rs 108.11 cr has Fallen at -15.5% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Sonata Software
Net Sales - Quarterly
Highest at Rs 3,279.10 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 3,279.10 cr has Grown at 22.6% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 2,675.31 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Sonata Software
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 130.32 cr has Fallen at -11.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 146.39 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 108.11 cr has Fallen at -15.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 127.95 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
