Sonata Software Limited (SONATSOFTW) Fair Value & Analysis

Technology · IN · Market cap ₹75.8B

A solid business, screening 27% undervalued on our models.

What matters now

• Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality.
• A fairly wide model range (₹230.23 to ₹512.84) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹191.65 – ₹838.68 · fair‑value band ₹230.23 – ₹512.84 · the ₹320.45 price screens below the ₹408.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Sonata Software Limited (SONATSOFTW) currently trades at ₹320.45, while our model-based Fair Value estimate is ₹408.09, implying the stock looks roughly 27.4% undervalued today. The Quality Score stands at 60/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Sonata Software Limited generated revenue of ₹107B at a net margin of 4.3%. Revenue declined 3.1% year over year. It earns a return on equity of 25.7%. Net debt stands at ₹3.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹230.23 (bear case) to ₹512.84 (bull case); at ₹320.45, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 28% below its 52-week high and 55% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at 0% fair-value upside, at 27%, SONATSOFTW screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: DCF Models (₹483.57) versus Asset-Based (₹46.10). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Sonata Software Limited, together with its subsidiaries, provides information technology services and solutions in the United States, Europe, the Middle East, the Asia Pacific, the United Kingdom, Australia, New Zealand, and Ireland.

Full company description

Sonata Software Limited, together with its subsidiaries, provides information technology services and solutions in the United States, Europe, the Middle East, the Asia Pacific, the United Kingdom, Australia, New Zealand, and Ireland. The company offers GCC solution; digital contact center; product engineering; SAP modernization; application management; optima; cloud modernization, such as azure, AWS, and GCP; data modernization consist of Microsoft fabric, data privacy, and snowflake; artificial intelligence, including generative AI and agentic AI. It also provides dynamic modernization comprise migration, D365 customer experience, continuous modernization, AI-Led D365 transformation, and Microsoft power platform; customer experience includes sonata CX; COTS comprising SAP CX; hyper automation, such as RPA migration factory, digital assurance, robotic, finance, SCM, and HR process automation. In addition, the company offers managed cloud and infrastructure, quality assurance, and technology consulting services, as well as blockchain technologies. It serves banking, mortgage, lending, insurance, healthcare, life sciences, manufacturing, and retail sectors. Sonata Software Limited was founded in 1986 and is headquartered in Bengaluru, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Sonata Software Limited reported revenue of ₹107B in FY2026 versus ₹55.5B in FY2022, a compound +17.8%/yr. Reported net income was ₹4.6B in FY2026, compounding +5.4%/yr from FY2022.

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Peer Group

Information Technology Services · 490 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Information Technology Services median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.