Sonata Software Stock Price Analysis and Quick Research Report. Is Sonata Software an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Sonata Software. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Sonata Software has a PE ratio of 50.8127921801955 which is high and comparatively overvalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Sonata Software has ROA of 20.1147% which is a good sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Sonata Software has a Current ratio of 3.9244.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Sonata Software has a ROE of 28.8763%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Sonata Software has a Debt to Equity ratio of 0 which means that the company has low proportion of debt in its capital.

• Sales growth: Sonata Software has reported revenue growth of 4.3155% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Sonata Software for the current financial year is 7.34684407501185%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Sonata Software is Rs 4.4 and the yield is 1.155%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Sonata Software is Rs 7.5296. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Sonata Software in Ticker for free. Also, one can get the intrinsic value of Sonata Software by using Valuation Calculators, which are available with a Finology ONE subscription. 

Sonata Software FAQs

Q1. What is Sonata Software share price today?
Ans: The current share price of Sonata Software is Rs 382.6.

Q2. What is the market capitalisation of Sonata Software?
Ans: Sonata Software has a market capitalisation of Rs 10729.05346016 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Sonata Software?
Ans: The PE ratio of Sonata Software is 50.8127921801955 and the P/B ratio of Sonata Software is 13.2432451142602, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Sonata Software share?
Ans: The 52-week high share price of Sonata Software is Rs 691, and the 52-week low share price of Sonata Software is Rs 286.4.

Q5. Does Sonata Software pay dividends?
Ans: Currently, Sonata Software pays dividends. Dividend yield of Sonata Software is around 1.155%.

Q6. What are the face value and book value of Sonata Software shares?
Ans: The face value of Sonata Software shares is Rs 1, while the book value per share of Sonata Software is around Rs 28.8902. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Sonata Software?
Ans: Sonata Software has a total debt of Rs 0 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Sonata Software?
Ans: The ROE of Sonata Software is 28.8763% and ROCE of Sonata Software is 31.7161%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Sonata Software a good buy for the long term?
Ans: The Sonata Software long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Sonata Software undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Sonata Software appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Sonata Software’s financials?
Ans: You can review Sonata Software’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.