Sonata Software Limited (SONATSOFTW.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+200.2%

₹683.84

vs ₹227.76 price

Levered DCF

₹559.20

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

—

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	12.52×	22.78×	64.4×	25.67×	20.4×	21.7×	6.16×	14.22×
P/B	3.05×	5.68×	14.13×	8.92×	6.99×	5.84×	2.55×	4.62×
P/S	0.54×	0.95×	2.31×	1.56×	1.38×	1.25×	0.46×	1.2×
EV / EBITDA	9.49×	14.15×	29.67×	17.55×	12.61×	11.91×	3.54×	9.27×
Gross margin	11.6%	13.0%	17.8%	14.2%	15.2%	15.7%	19.0%	20.7%
Operating margin	5.0%	5.7%	7.8%	7.4%	8.0%	8.2%	9.6%	11.1%
Net margin	4.3%	4.2%	3.6%	6.1%	6.8%	5.8%	7.4%	8.4%
Current ratio	1.05×	1.04×	0.99×	1.12×	1.5×	1.56×	1.42×	1.74×
Debt / equity	0.38×	0.3×	0.54×	0.45×	0.15×	0.2×	0.28×	0.02×
Interest coverage	10.5×	8.83×	16.25×	29.66×	27.67×	23.98×	23.68×	96.78×
Dividend yield	3.8%	1.3%	1.1%	2.0%	2.4%	0.8%	20.8%	3.3%
Payout ratio	48.1%	28.9%	71.0%	51.4%	49.7%	16.7%	127.9%	47.4%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	24.4%	24.9%	21.9%	34.7%	34.2%	26.9%	41.4%	32.4%
Return on invested capital	14.4%	18.1%	19.4%	17.3%	25.1%	21.3%	29.7%	28.2%
Return on assets	9.1%	8.9%	6.0%	10.4%	14.7%	12.5%	17.1%	16.3%
Free cash flow yield	6.8%	5.9%	1.3%	2.0%	5.7%	8.3%	21.1%	-0.4%
Earnings yield	8.0%	4.4%	1.6%	3.9%	4.9%	4.6%	16.2%	7.0%
Enterprise value	₹61.2B	₹97.6B	₹201B	₹117.7B	₹71.1B	₹48.4B	₹15.2B	₹33.9B
Net debt / EBITDA	0.47×	0.1×	0.34×	0.26×	-1.02×	-1.12×	-0.43×	-0.43×
Cash conversion cycle (days)	-5	6	7	-4	-19	-7	8	17