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Last Updated: April 2, 2026, 3:42 am
Author: Getaka|Social: XLinkedIn
Stock Ticker - BSE: 532221 | NSE: SONATSOFTW

Sonata Software Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹188.64Overvalued by 14.64%vs CMP ₹221.00

P/E (13.4) × ROE (27.3%) × BV (₹63.20) × DY (1.99%)

₹181.49Overvalued by 17.88%vs CMP ₹221.00
MoS: -21.8% (Negative)Confidence: 53/100 (Moderate)Models: 3 Under, 6 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹194.7522%Over (-11.9%)
Graham NumberEarnings₹149.6116%Over (-32.3%)
Earnings PowerEarnings₹95.6013%Over (-56.7%)
DCFCash Flow₹171.9113%Over (-22.2%)
Net Asset ValueAssets₹63.277%Over (-71.4%)
EV/EBITDAEnterprise₹263.169%Under (+19.1%)
Earnings YieldEarnings₹157.407%Over (-28.8%)
ROCE CapitalReturns₹272.469%Under (+23.3%)
Revenue MultipleRevenue₹362.635%Under (+64.1%)
Consensus (9 models)₹181.49100%Overvalued
Key Drivers: Wide model spread (₹63–₹363) — high uncertainty.

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: 3.2%

*Investments are subject to market risks

Investment Snapshot

72
Sonata Software Ltd scores 72/100 (Strong)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health92/100 · Strong
ROCE 29.1% ExcellentROE 27.3% ExcellentD/E 0.09 Low debtInterest Coverage 0.0x RiskyProfitable 5/5 years Consistent
Smart Money30/100 · Weak
FII holding down -1.97% (6mo) SellingPromoter holding at 28.2% Stable
Earnings Quality50/100 · Moderate
OPM stable around 8% Steady
Quarterly Momentum68/100 · Strong
Revenue (4Q): +11% YoY GrowingProfit (4Q): +3% YoY Positive
Industry Rank100/100 · Strong
P/E 13.4 vs industry 44.0 Cheaper than peersROCE 29.1% vs industry 20.6% Above peersROE 27.3% vs industry 18.6% Above peers3Y sales CAGR: 22% High growth

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Sonata Software Ltd Investor Signals

Computed from valuation, cash flow, balance sheet, ownership and quarterly trend data already available in this stock page.

Value Trap Score
60/100
Moderate
Derived from: Cheapness + weak quality + weak cash support
Current data: P/E 13.4 vs Ind 44.0 | ROCE 29.1% | ROE 27.3% | CFO/NP N/A
Balance Sheet Stress
20/100
Comfortable
Derived from: Leverage + debt servicing + liquidity + debt trend
Current data: D/E 0.09x | IntCov 0.0x | Current 1.56x | Borrow/Reserve 0.42x
Cash Flow Reliability
29/100
Weak
Derived from: Cash backing of earnings + working capital pressure
Current data: CFO ₹0 Cr | NP ₹425 Cr | CFO/NP N/A
Ownership Accumulation
-50
Distribution
Derived from: FII + DII + promoter direction, adjusted by crowding
Current data: FII -0.06 pp | DII -0.03 pp | Prom 0.00 pp
Business Momentum
+21
Early weakness
Derived from: Latest quarter sales + profit + OPM change
Current data: Q Sales +45.4% | Q NP -13.3% | Q OPM -2.0 pp
Derived FieldValueHow it is derived
Valuation Gap %-17.9%((Fair Value - CMP) / CMP) × 100
Borrowings / Reserves0.42xLatest borrowings divided by latest reserves
CFO / Net ProfitN/ALatest operating cash flow divided by latest net profit
FII Change-0.06 ppLatest FII% minus previous FII%
DII Change-0.03 ppLatest DII% minus previous DII%
Promoter Change0.00 ppLatest promoter% minus previous promoter%
Shareholder Count Change-6,128Latest shareholder count minus previous count
Quarterly Sales Change+45.4%Latest quarter sales vs previous quarter sales
Quarterly Profit Change-13.3%Latest quarter net profit vs previous quarter net profit
Quarterly OPM Change-2.0 ppLatest quarter OPM minus previous quarter OPM

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 3:42 am

Market Cap 6,190 Cr.
Current Price 221
Intrinsic Value₹181.49
High / Low 464/207
Stock P/E13.4
Book Value 63.2
Dividend Yield1.99 %
ROCE29.1 %
ROE27.3 %
Face Value 1.00
PEG Ratio4.14

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Sonata Software Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Sonata Software Ltd 6,190 Cr. 221 464/20713.4 63.21.99 %29.1 %27.3 % 1.00
Newgen Software Technologies Ltd 6,145 Cr. 432 1,379/40120.0 1031.16 %27.8 %22.4 % 10.0
Datamatics Global Services Ltd 4,096 Cr. 693 1,120/52218.8 2460.72 %15.0 %12.5 % 5.00
Moschip Technologies Ltd 3,198 Cr. 165 288/12577.8 19.10.00 %11.9 %11.2 % 2.00
Nucleus Software Exports Ltd 2,040 Cr. 775 1,378/71212.6 3221.61 %22.6 %16.8 % 10.0
Industry Average93,414.06 Cr648.3343.95156.220.97%20.61%18.63%7.00

All Competitor Stocks of Sonata Software Ltd

Quarterly Result

MetricDec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales 2,2611,9142,0161,9132,4932,1922,5272,1702,8432,6172,9652,1193,081
Expenses 2,1051,7621,8371,7152,2862,0472,3511,9932,6792,4452,8061,9472,880
Operating Profit 156152178197208144176177164173160173200
OPM % 7%8%9%10%8%7%7%8%6%7%5%8%6%
Other Income 17252823-15555191921112431-20
Interest 47212122222019161051413
Depreciation 14193133343433333223262627
Profit before tax 155150154167-3144142144137151153164141
Tax % 24%24%22%25%1,389%23%25%26%23%29%28%27%26%
Net Profit 118114120124-46110106106105108109120104
EPS in Rs 4.204.064.284.43-1.653.943.773.803.743.833.904.293.72

Last Updated: March 3, 2026, 2:38 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 25, 2026, 10:46 pm

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 1,5661,6821,9402,3712,4542,9613,7434,2285,5537,4498,61310,15710,782
Expenses 1,4651,5141,7492,1912,2232,6253,3703,8485,0906,8457,8859,46810,077
Operating Profit 101168192180231336373380464604728690705
OPM % 6%10%10%8%9%11%10%9%8%8%8%7%7%
Other Income 172347674730582810271-507147
Interest 23895315151819856542
Depreciation 86611121337404759132121102
Profit before tax 107182225226260349379352500597461574608
Tax % 27%27%30%31%26%29%27%31%25%24%33%26%
Net Profit 78133159157192249277244376452308425441
EPS in Rs 2.774.775.665.576.878.899.888.7013.4216.1211.0015.1415.74
Dividend Payout % 51%55%60%60%57%53%76%60%58%48%103%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)70.51%19.55%-1.26%22.29%29.69%11.24%-11.91%54.10%20.21%-31.86%37.99%
Change in YoY Net Profit Growth (%)0.00%-50.96%-20.81%23.55%7.39%-18.44%-23.16%66.01%-33.89%-52.07%69.85%

Sonata Software Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:20%
5 Years:22%
3 Years:22%
TTM:16%
Compounded Profit Growth
10 Years:12%
5 Years:9%
3 Years:4%
TTM:4%
Stock Price CAGR
10 Years:21%
5 Years:25%
3 Years:10%
1 Year:-47%
Return on Equity
10 Years:33%
5 Years:32%
3 Years:31%
Last Year:27%

Last Updated: September 5, 2025, 1:31 pm

Balance Sheet

Last Updated: February 1, 2026, 3:56 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 11111110101010101014282828
Reserves 3644184605806437586598951,0891,2871,3791,6781,744
Borrowings 62417655341686185159590765516739
Other Liabilities 2793553455525457448618561,3012,4662,8892,4482,098
Total Liabilities 6598089921,1981,2321,5281,6161,9472,5594,3575,0614,6704,609
Fixed Assets 17231201181141992983244271,7321,6711,6031,801
CWIP 000001-0001-0260
Investments 586452128198146147615922024524972
Other Assets 5847218209519201,1821,3051,5471,9742,4043,1452,7922,736
Total Assets 6598089921,1981,2321,5281,6161,9472,5594,3575,0614,6704,609

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity + 12777158185290-6369443450268281644
Cash from Investing Activity + -39-126-133-310412139-112-87-771-53-437
Cash from Financing Activity + -41-51-30-173-140-166-310-62-271187-108-433
Net Cash Flow 46-100-49253-16019826893-316119-226
Free Cash Flow 12371144185283-14360441441227281577
CFO/OP 90%62%101%139%149%24%133%152%131%73%75%117%

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow95.00144.0016.00125.00197.00320.00287.00195.00305.0014.00-37.00174.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days 4967678059100685361616863
Inventory Days 033000000262
Days Payable 72908496878980
Cash Conversion Cycle -23-20-1480591006853-35-24-15-15
Working Capital Days -79-18-1124-4-18-17-34-47-21
ROCE %28%44%42%35%39%46%51%39%44%39%36%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 28.17%28.17%28.17%28.17%28.17%28.17%28.17%28.17%28.17%28.17%28.17%28.17%
FIIs 12.95%13.59%14.98%14.47%13.94%12.41%12.13%12.29%10.76%9.68%8.85%8.79%
DIIs 13.86%14.31%16.38%17.60%19.05%21.56%23.37%24.30%25.85%25.55%26.33%26.30%
Public 43.94%42.87%39.41%38.71%37.80%36.85%35.32%34.22%34.21%35.63%35.58%35.64%
Others 1.08%1.06%1.04%1.03%1.02%1.00%1.00%1.00%1.00%0.97%1.08%1.09%
No. of Shareholders 1,08,0151,12,6291,12,2741,55,6921,44,9721,65,8801,65,9351,65,8081,72,8012,05,8072,08,5392,02,411

Shareholding Pattern Chart

No. of Shareholders

Sonata Software Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund 19,409,949 1.39 520.5719,371,2192026-01-26 04:00:560.2%
Tata Digital India Fund 5,225,514 1.42 140.153,247,9922025-12-07 00:48:4160.88%
Invesco India Smallcap Fund 4,550,452 1.26 122.044,325,4522026-02-23 06:39:595.2%
ICICI Prudential Technology Fund 3,662,593 0.72 98.233,644,8272026-02-23 06:39:590.49%
Invesco India Large & Mid Cap Fund 3,293,854 0.94 88.34N/AN/AN/A
Nippon India Small Cap Fund 3,158,666 0.13 84.721,544,0842025-12-08 07:42:13104.57%
Invesco India Contra Fund 3,091,799 0.42 82.922,691,7992026-01-26 06:36:4114.86%
HDFC Childrens Fund 3,007,488 0.78 80.66N/AN/AN/A
Aditya Birla Sun Life Value Fund 2,252,826 0.97 60.422,082,8262026-03-12 04:51:568.16%
HDFC Multi Cap Fund 1,996,056 0.27 53.53N/AN/AN/A

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23Mar 22Mar 21
FaceValue 1.001.001.001.001.00
Basic EPS (Rs.) 15.3011.1232.5836.2123.48
Diluted EPS (Rs.) 15.2811.1032.5836.2123.48
Cash EPS (Rs.) 19.6715.8736.8440.7827.29
Book Value[Excl.RevalReserv]/Share (Rs.) 61.4550.6893.77105.7987.15
Book Value[Incl.RevalReserv]/Share (Rs.) 61.4550.6893.77105.7987.15
Revenue From Operations / Share (Rs.) 365.90310.38537.07534.49406.94
PBDIT / Share (Rs.) 27.3930.7448.6654.4539.18
PBIT / Share (Rs.) 23.0225.9844.4049.9035.37
PBT / Share (Rs.) 20.6616.6343.0648.1633.89
Net Profit / Share (Rs.) 15.3011.1232.5836.2323.48
NP After MI And SOA / Share (Rs.) 15.3011.1232.5836.2323.48
PBDIT Margin (%) 7.489.909.0610.189.62
PBIT Margin (%) 6.298.378.269.338.69
PBT Margin (%) 5.645.358.019.018.32
Net Profit Margin (%) 4.183.586.066.775.76
NP After MI And SOA Margin (%) 4.183.586.066.775.76
Return on Networth / Equity (%) 24.8921.9334.7434.2426.94
Return on Capital Employeed (%) 30.1235.0728.0740.9736.47
Return On Assets (%) 8.935.9910.3714.7312.53
Long Term Debt / Equity (X) 0.130.300.230.000.00
Total Debt / Equity (X) 0.250.470.370.030.09
Asset Turnover Ratio (%) 2.051.810.540.550.65
Current Ratio (X) 1.040.991.121.501.56
Quick Ratio (X) 1.020.961.101.501.56
Inventory Turnover Ratio (X) 139.870.000.000.000.00
Dividend Payout Ratio (NP) (%) 28.7970.8351.3649.6817.03
Dividend Payout Ratio (CP) (%) 22.3849.6145.4244.1314.65
Earning Retention Ratio (%) 71.2129.1748.6450.3282.97
Cash Earning Retention Ratio (%) 77.6250.3954.5855.8785.35
Interest Coverage Ratio (X) 11.6510.0336.4131.3426.45
Interest Coverage Ratio (Post Tax) (X) 7.516.6825.3721.8516.85
Enterprise Value (Cr.) 9579.0519868.4211378.066956.974704.79
EV / Net Operating Revenue (X) 0.942.311.531.251.11
EV / EBITDA (X) 12.6023.2916.8612.3011.56
MarketCap / Net Operating Revenue (X) 0.942.331.561.381.25
Retention Ratios (%) 71.2029.1648.6350.3182.96
Price / BV (X) 5.6214.268.936.995.84
Price / Net Operating Revenue (X) 0.942.331.561.381.25
EarningsYield 0.040.010.030.040.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

About the Company - Qualitative Analysis

Sonata Software Ltd. is a Public Limited Listed company incorporated on 18/10/1994 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L72200MH1994PLC082110 and registration number is 082110. Currently Company is involved in the business activities of Other information technology and computer service activities n.e.c. Company's Total Operating Revenue is Rs. 991.31 Cr. and Equity Capital is Rs. 27.76 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
IT Consulting & Software208, T V Industrial Estate, Mumbai Maharashtra 400030Contact not found
Management
NamePosition Held
Mr. Sanjay K AsherChairman
Mr. P Srikar ReddyExe.Vice Chairman & Whole Time Director
Mr. Samir DhirManaging Director & CEO
Mr. S B GhiaDirector
Mr. Viren RahejaDirector
Mr. Surin Shailesh KapadiaDirector
Ms. Mona Ninad DesaiDirector

FAQ

What is the intrinsic value of Sonata Software Ltd and is it undervalued?

As of 05 April 2026, Sonata Software Ltd's intrinsic value is ₹181.49, which is 17.88% lower than the current market price of ₹221.00, suggesting the stock is overvalued. This is calculated using the PE ratio method factoring in ROE (27.3 %), book value (₹63.2), dividend yield (1.99 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of Sonata Software Ltd?

Sonata Software Ltd is trading at ₹221.00 as of 05 April 2026, with a FY2026-2027 high of ₹464 and low of ₹207. The stock is currently near its 52-week low. Market cap stands at ₹6,190 Cr..

How does Sonata Software Ltd's P/E ratio compare to its industry?

Sonata Software Ltd has a P/E ratio of 13.4, which is below the industry average of 43.95. Trading at a steep discount to peers could signal a value opportunity or reflect concerns about the company's fundamentals.

Is Sonata Software Ltd financially healthy?

Key indicators for Sonata Software Ltd: ROCE of 29.1 % indicates efficient capital utilization; ROE of 27.3 % shows strong shareholder returns. Dividend yield is 1.99 %.

Is Sonata Software Ltd profitable and how is the profit trend?

Sonata Software Ltd reported a net profit of ₹425 Cr in Mar 2025 on revenue of ₹10,157 Cr. Compared to ₹376 Cr in Mar 2022, the net profit shows an improving trend.

Does Sonata Software Ltd pay dividends?

Sonata Software Ltd has a dividend yield of 1.99 % at the current price of ₹221.00. The company pays dividends, though the yield is modest.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sonata Software Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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