Sonata Software Ltd
NSE: SONATSOFTW BSE: 532221
₹305.90
(-1.05)%
Sat, 07 Feb 2026, 11:27 am
Market Cap85.84B
PE Ratio19.23
Dividend2.25
Technology Services
Information Technology Services
24.5KAnalysis
dividend
- Dividends per share have increased over the past 10 years.
- Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
- Sonata Software's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
- Sonata Software's dividend is above the markets top 25% of dividend payers in India (3.08%).
- Dividends paid are not well covered by earnings (0.9x coverage).
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
future
- Sonata Software is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
- Performance (ROE) is expected to be above the current IN IT industry average.
- Cash flow for Sonata Software is expected to decrease over the next 2 years.
- Sonata Software's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
- Sonata Software's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
- Sonata Software's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
- Sonata Software's earnings are expected to decrease over the next year.
- Sonata Software's net income is expected to decrease over the next 2 years.
- A decline in Sonata Software's performance (ROE) is expected over the next 3 years.
- Sonata Software's revenue is expected to increase but not above the 50% threshold in 2 years time.
- Sonata Software's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
- Sonata Software's revenue growth is positive but not above the India market average.
health
- Sonata Software is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Sonata Software is profitable, therefore cash runway is not a concern.
- Sonata Software is profitable, therefore cash runway is not a concern.
- Debt is well covered by operating cash flow (429.9%, greater than 20% of total debt).
- Debt is covered by short term assets, assets are 13.8x debt.
- Sonata Software's cash and other short term assets cover its long term commitments.
- Interest payments on debt are well covered by earnings (EBIT is 22.2x coverage).
- Sonata Software's level of debt (12.8%) compared to net worth is satisfactory (less than 40%).
- Low level of unsold assets.
- The level of debt compared to net worth has increased over the past 5 years (5.7% vs 12.8% today).
management
- The tenure for the Sonata Software board of directors is about average.
- Palem's compensation has been consistent with company performance over the past year, both up more than 20%.
- The tenure for the Sonata Software management team is about average.
- Palem's remuneration is higher than average for companies of similar size in India.
misc
- Sonata Software has significant price volatility in the past 3 months.
past
- Sonata Software's year on year earnings growth rate has been positive over the past 5 years.
- Sonata Software used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
- Sonata Software has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
- Sonata Software made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
- Sonata Software's earnings growth has exceeded the IN IT industry average in the past year (11.1% vs 6%).
- Sonata Software's 1-year earnings growth is less than its 5-year average (11.1% vs 15.9%)
value
- Sonata Software is good value based on earnings compared to the IN IT industry average.
- Sonata Software is good value based on earnings compared to the India market.
- NSEI:SONATSOFTW is up 24.2% outperforming the IT industry which returned 8.5% over the past month.
- NSEI:SONATSOFTW is up 24.2% outperforming the market in India which returned 8% over the past month.
- Sonata Software's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Sonata Software's share price is below the future cash flow value, but not at a substantial discount (< 40%).
- Sonata Software is overvalued based on assets compared to the IN IT industry average.
- Sonata Software earnings are not expected to grow next year, we can't assess if its growth is good value.
- SONATSOFTW underperformed the IT industry which returned -10.1% over the past year.
- SONATSOFTW underperformed the Market in India which returned -14.5% over the past year.
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Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800