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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
Sonata Software Limited is a modernization engineering company. The Company is engaged in the business of providing Information Technology Services and Solutions to its customers in the United States of America, Europe, Middle East, Asia, Australia and India. Its cloud…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A high-quality, stagnant business, trading cheap versus its own history.
Sonata Software is scored on the it / services framework. It keeps a slim 4.3% of every rupee of sales as net profit. Those profits are backed by real cash — operating cash flow runs 1.16× reported profit. Free cash flow is worth about 4.8% of its market value.
Over the last 3 years revenue compounded at 13%/yr and profit at 1%/yr. Book value has grown 14%/yr. Return on equity is an elite 26.7%. In the latest quarter profit fell 17% versus the prior quarter.
At 14× earnings, the stock sits at the 3rd percentile of its own 3.6-year range — the cheap end of where it has historically traded. Today's price implies ~5%/yr earnings growth for a decade. The books come through clean — a forensic grade of A, and Altman puts distress risk in the safe zone.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 14.62 | 58.63 | better |
| P/B | 3.35 | 7.84 | better |
| EV/EBITDA | 9 | — | — |
| ROE | 26.69 | 5.36 | better |
| ROCE | 27.83 | 67.95 | worse |
| ROA | 8.92 | — | — |
| Quick Ratio | 1.04 | — | — |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| TCS | 17.4 | 7.6 | 43.4% |
| Infosys | 15.6 | 5.1 | 31.0% |
| HCL Technologies | 21.3 | 5.1 | 24.1% |
Revenue has grown every year across all 4 financial years shown. 13% CAGR over 3 years — steady double-digit compounder. Growth is decelerating — latest year grew slower than the year before.
Revenue is outpacing profit (13% vs 1%) — costs are rising faster than the top line.
Operating margin has compressed from 8% to 6% — costs or competition are eating into profitability.
ROE at 24% — the business earns well above its cost of equity. High ROE despite single-digit margins — an asset-turn play with high capital velocity. Capital efficiency declining — ROE down 10pp.
1% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
Operating cash flow has been positive every year — the business generates real cash, not just accounting profit. Heavy investing spend every year, but operations generate enough to cover it — the business self-funds its growth. Financing outflows in consecutive years — balance-sheet discipline through debt repayment or dividends.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue rose 28% sequentially — momentum is building. Wide quarterly swings (35% spread) — likely seasonality, lumpy orders, or project-based revenue. Run-rate stepping up — recent quarters average 12% above earlier ones.
Profit fell 17% QoQ — one-quarter drops can be noise, but a pattern matters. Quarterly margins are compressing (6% → 3%) — more revenue isn't translating to proportionally more profit.
How today's P/E compares to the stock's own historical range. Dashed line = the 3.6y median.
Promoters hold just 28.2% — widely held; sentiment-driven.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.