Sonata Software Ltd
Ticker: SONATSOFTW
Decent
48/100
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Investing Reference
Price
370.35
Market Cap
10284.98
Debt/Equity
0.3025
ROE %
27.290
PB
6.0289
Promoter %
28.170
Pledge %
0.000
1Y Rev Growth %
17.048
5Y Rev Growth %
21.890
NP Margin %
4.152
NP Margin 5Y Avg %
5.216
Trading Reference
1M Return %
-5.166
6M Return %
11.083
1Y Return %
-39.736
% Away 52W High
85.527
% Away 52W Low
29.312
Daily Volume
860356
Investment Verdict
Risky
Score 55/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Avoid
Score 26/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Sonata Software Ltd is currently trading near a key support level, with the 50-day EMA indicating a potential upward trend. If it breaks above the resistance level, there is a strong probability of a bullish move. However, if it falls below the support, a bearish trend may emerge.
Upside Probability: 20% | Downside Probability: 15%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Sonata Software Ltd is a leading IT services and solutions provider based in India, catering to businesses seeking digital transformation. With a strong focus on innovation, Sonata empowers organizations across various sectors to enhance operational efficiency and customer engagement. Its expertise in cloud services, enterprise applications, and data analytics makes it a trusted partner for enterprises aiming to thrive in the digital era. Sonata's commitment to quality and customer satisfaction positions it as a key player in the technology landscape.
- Established leader in IT services
- Focus on digital transformation
- Expertise in cloud and data analytics
- Trusted partner for enterprises
- Commitment to quality and customer satisfaction
Investment Thesis
Sonata Software Ltd stands out with a credible promoter group and robust growth in digital services. The company's strategic focus on technology solutions positions it well in a rapidly evolving market. With attractive valuations compared to peers, Sonata presents a compelling investment opportunity for retail investors seeking growth and stability.
- Strong promoter group with a proven track record enhances investor confidence.
- Significant growth potential in digital services, driven by increasing demand for technology solutions.
- Attractive valuation metrics compared to industry peers, offering potential for upside.
- Commitment to innovation and strategic partnerships strengthens market position.
- Consistent financial performance and solid fundamentals make it a reliable investment choice.
Opportunity vs Risk
Opportunities
- Strong growth in digital transformation
- Expansion in global markets
- Partnerships with major tech firms
- Increasing demand for IT services
Risks ⚠️
- Intense competition in IT sector
- Dependence on client contracts
- Economic slowdown impacts spending
- Regulatory changes affecting operations
Peer Perspective
Sonata Software Ltd trades at a discount to peers like Infosys and TCS, reflecting its growth potential. A sustained improvement in margins could trigger a rerating, aligning its valuation more closely with industry leaders.
Future Outlook
Sonata Software Ltd is well-positioned for growth, driven by its strategic initiatives in digital transformation. However, successful execution and effective cost control will be crucial to fully realize its potential in the evolving market.
AI FAQs for Retail Users
- Q: What does Sonata Software Ltd do?A: Sonata Software Ltd provides IT services and solutions, focusing on software development and digital transformation.
- Q: Is Sonata Software Ltd a profitable company?A: Yes, Sonata Software Ltd has reported profitability in recent financial statements, but past performance does not guarantee future results.
- Q: What are the main markets for Sonata Software Ltd?A: Sonata operates primarily in India and international markets, serving various industries including travel, retail, and logistics.
- Q: How can I invest in Sonata Software Ltd?A: You can invest in Sonata Software Ltd by purchasing shares through a registered stockbroker or online trading platform.
- Q: What risks should I consider before investing?A: Consider market volatility, industry competition, and company performance, as these factors can impact your investment.
📊 Stock Investment Checklist (100 Points)
Sonata Software Ltd • Updated: 2025-09-18 09:11:49
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10BusinessHighThe company operates in the IT services sector, which is expected to grow due to digital transformation.
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10GrowthHighConsistent revenue growth over the past few years, but profit margins have fluctuated.
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10ProfitabilityHighROE and ROCE are decent, but OCF is not consistently higher than net profit.
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8ValuationHighP/E and P/B ratios are higher than industry averages, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity ratios indicate some concerns.
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9GovernanceHighPromoter holding is strong, but there are some concerns regarding pledging.
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6DriversGoodGrowth drivers are present, but execution risks remain due to market competition.
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5TechnicalsGoodMarket sentiment is mixed, with some volatility in price action.
Final Score & Verdict
Score 48 / 100
• Decent
Sonata Software Ltd shows potential in a growing sector, but faces challenges in profitability and valuation metrics.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100