In this article, we will try to analyze the Sonata Software share price target for 2024, 2025, 2026, 2027, 2028, 2029, and 2030 based on the company’s financials and various reports from research and brokerage firms.
Sonata Software is involved in the business of providing cloud management in information technology (IT) services and solutions to its various customers in the United States of America, Europe, the Middle East, Australia, and India.
Table of Contents
Stock Performance
Sonata Software has delivered compound sales growth with a 25% CAGR in the last 5 years.
Sonata Software has delivered compound profit growth with a 19% CAGR in the last 5 years.
Sonata Software has delivered a stock price with a 46% CAGR in the last 5 years.
Sonata Software has delivered a return on equity of 36% CAGR in the last 5 years.
Quarter 3, 2023 Results
The company has delivered a healthy operational performance for the quarter ended September 2023.
| Sales | 1,913 |
| Expenses | 1,715 |
| Operating Profit | 197 |
| Other Income | 23 |
| Interest | 21 |
| Depreciation | 33 |
| Profit before Tax | 167 |
| Net Profit | 124 |
Recent News
Sonata Software Ltd. announces a bonus issue of 1 equity share for every 1 equity share held by the shareholders of the company on the record date of November 7, 2023.
The board also declared an interim dividend of Rs 7 per share for the financial year 2023-2024.
The company’s business grew by 6% QoQ and 46% YoY.
Company Overview-
Sonata Software Limited was founded in 1986 and is based in Bangalore, Karnataka. Sonata Software Limited specializes in cloud and data modernization, Microsoft Dynamics modernization, digital contact center setup and management, managed cloud services, and digital transformation services. Sonata has leading digital technology provider customers such as Microsoft, Amazon, Google, and others.
Sonata Software is engaged in managed cloud services and managed infrastructure services. This helps enable enterprises to keep the lights on, enjoy best-in-class technology to deliver services faster, and ensure the best quality services are delivered to internal and external customers.
In addition, the company delivers solutions for customers in retail, manufacturing, distribution, travel, service, and health and life sciences industries, as well as banking and financial institutions.
Subsidiaries-
- Quant Systems Inc.
- Sonata Encore Software Services
- Sonata GBW
- Sonata Sopris
- Sonata Australia Pty Ltd.
- Sonata Software GmbH
- Sonata Europe Ltd.
- Sonata Software (Qatar) LLC
- Sonata Software FZ LLC
- Sonata Software North America Inc.
- Sonata Information Technology Ltd.
Financials-
| Market Cap | 20,795 |
| P/E Ratio | 66.69 |
| Industry P/E | 30.17 |
| Debt to Equity | 0.35 |
| Return on Equity | 33.04% |
| Dividend Yield | 1.05% |
Net-profit margin-
| Year | Revenue | Profit |
|---|---|---|
| 2023 | 7,520 | 452 |
| 2022 | 5,655 | 376 |
| 2021 | 4,256 | 244 |
| 2020 | 3,802 | 277 |
| 2019 | 2,988 | 249 |
Share-holding Pattern-
| Dec’23 | Sep’23 | Jun’23 | Mar’23 | Dec’22 | Sep’22 | |
|---|---|---|---|---|---|---|
| Retail | 40.47% | 41.13% | 44.67% | 45.80% | 46.36% | 45.98% |
| Promoters | 28.17% | 28.17% | 28.17% | 28.17% | 28.17% | 28.17% |
| Mutual Funds | 16.55 | 15.69% | 13.57% | 13.08% | 12.63% | 12.96% |
| Foreign Institutions | 14.47% | 14.98% | 13.59% | 12.95% | 12.84% | 12.89% |
| Domestic Institutions | 0.34% | 0.03% | 0.00% | 0.00% | 0.00% | 0.00% |
Share price targets for Sonata Software are highly speculative and influenced by numerous factors, such as market conditions, economic indicators, company performance, industry trends, and many more.
We will predict the Sonata Software share price target in 2024, 2025, 2026, 2027, 2028, 2029, and 2030 by analyzing the previous performance and after studying various brokerage and research firm forecasts.
Sonata Software share price target: 2024
| 2024 | Minimum Share Price | Maximum Share Price |
|---|---|---|
| January 2024 | 715 | 811 |
| February 2024 | 744 | 857 |
| March 2024 | 765 | 875 |
| April 2024 | 714 | 920 |
| May 2024 | 740 | 895 |
| June 2024 | 784 | 915 |
| July 2024 | 812 | 955 |
| August 2024 | 830 | 969 |
| September 2024 | 844 | 1025 |
| October 2024 | 875 | 1066 |
| November 2024 | 940 | 1142 |
| December 2024 | 985 | 1254 |
The share price of Sonata Software is expected to continue experiencing volatility throughout the year, with a maximum price target of Rs 1254 in December 2024 and a minimum price target of Rs 715 in January 2024. The average price target for Sonata Software in 2024 is expected to be around Rs 1050.
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Sonata Software Share price target prediction for 2024 is based on the company’s financials, previous trends, and various brokerage firm reports.
Sonata Software share price target: 2025
| 2025 | Minimum Share Price | Maximum Share Price |
|---|---|---|
| January 2025 | 1126 | 1288 |
| February 2025 | 1172 | 1315 |
| March 2025 | 1265 | 1385 |
| April 2025 | 1326 | 1420 |
| May 2025 | 1390 | 1485 |
| June 2025 | 1444 | 1615 |
| July 2025 | 1482 | 1695 |
| August 2025 | 1610 | 1755 |
| September 2025 | 1644 | 1825 |
| October 2025 | 1575 | 1906 |
| November 2025 | 1710 | 2042 |
| December 2025 | 1785 | 2054 |
The share price of Sonata Software is expected to continue experiencing volatility throughout the year, with a maximum price target of Rs 2054 in December 2025 and a minimum price target of Rs 1126 in January 2025. The average price target for Sonata Software in 2025 is expected to be around Rs 1625.
Sonata Software Share’s price target prediction for 2025 is based on the company’s financials, previous trends, and various brokerage firm reports.
Sonata Software share price target: 2026
| 2026 | Minimum Share Price | Maximum Share Price |
|---|---|---|
| January 2026 | 1805 | 2088 |
| February 2026 | 1872 | 2215 |
| March 2026 | 1975 | 2385 |
| April 2026 | 2084 | 2420 |
| May 2026 | 2170 | 2485 |
| June 2026 | 2244 | 2595 |
| July 2026 | 2282 | 2555 |
| August 2026 | 2390 | 2669 |
| September 2026 | 2404 | 2725 |
| October 2026 | 2605 | 2906 |
| November 2026 | 2740 | 3142 |
| December 2026 | 2885 | 3224 |
The share price of Sonata Software is expected to continue experiencing volatility throughout the year, with a maximum price target of Rs 3224 in December 2026 and a minimum price target of Rs 1805 in January 2026. The average price target for Sonata Software in 2026 is expected to be around Rs 2547.
Sonata Software Share’s price target prediction for 2026 is based on the company’s financials, previous trends, and various brokerage firm reports.
Sonata Software share price target: 2027
| 2027 | Minimum Share Price | Maximum Share Price |
|---|---|---|
| January 2027 | 2948 | 3285 |
| February 2027 | 3030 | 3415 |
| March 2027 | 3075 | 3545 |
| April 2027 | 3104 | 3690 |
| May 2027 | 3270 | 3795 |
| June 2027 | 3344 | 3715 |
| July 2027 | 3482 | 3855 |
| August 2027 | 3590 | 3969 |
| September 2027 | 3694 | 4025 |
| October 2027 | 3975 | 4166 |
| November 2027 | 4040 | 4342 |
| December 2027 | 4185 | 4554 |
The share price of Sonata Software is expected to continue experiencing volatility throughout the year, with a maximum price target of Rs 4554 in December 2027 and a minimum price target of Rs 2948 in January 2027. The average price target for Sonata Software in 2027 is expected to be around Rs 3605.
Sonata Software Share’s price target prediction for 2027 is based on the company’s financials, previous trends, and various brokerage firm reports.
Sonata Software share price target: 2028
| 2028 | Minimum Share Price | Maximum Share Price |
|---|---|---|
| January 2028 | 4274 | 4695 |
| February 2028 | 4322 | 4815 |
| March 2028 | 4465 | 4945 |
| April 2028 | 4504 | 5020 |
| May 2028 | 4790 | 5195 |
| June 2028 | 4884 | 5345 |
| July 2028 | 5082 | 5455 |
| August 2028 | 4970 | 5569 |
| September 2028 | 5144 | 5725 |
| October 2028 | 5375 | 5866 |
| November 2028 | 5440 | 5912 |
| December 2028 | 5585 | 6054 |
The share price of Sonata Software is expected to continue experiencing volatility throughout the year, with a maximum price target of Rs 6054 in December 2028 and a minimum price target of Rs 4274 in January 2028. The average price target for Sonata Software in 2028 is expected to be around Rs 5473.
Sonata Software Share’s price target prediction for 2028 is based on the company’s financials, previous trends, and various brokerage firm reports.
Sonata Software share price target: 2029
| 2029 | Minimum Share Price | Maximum Share Price |
|---|---|---|
| January 2029 | 5505 | 6088 |
| February 2029 | 5522 | 6315 |
| March 2029 | 5465 | 6245 |
| April 2029 | 5604 | 6320 |
| May 2029 | 5790 | 6495 |
| June 2029 | 5844 | 6515 |
| July 2029 | 5982 | 6755 |
| August 2029 | 6010 | 6869 |
| September 2029 | 6224 | 6825 |
| October 2029 | 6375 | 6966 |
| November 2029 | 6500 | 7042 |
| December 2029 | 6685 | 7084 |
The share price of Sonata Software is expected to continue experiencing volatility throughout the year, with a maximum price target of Rs 7084 in December 2025 and a minimum price target of Rs 5465 in March 2029. The average price target for Sonata Software in 2029 is expected to be around Rs 6584.
Sonata Software Share’s price target prediction for 2029 is based on the company’s financials, previous trends, and various brokerage firm reports.
Sonata Software share price target: 2030
| 2030 | Minimum Share Price | Maximum Share Price |
|---|---|---|
| January 2030 | 6705 | 7188 |
| February 2030 | 6622 | 7215 |
| March 2030 | 6765 | 7345 |
| April 2030 | 6804 | 7520 |
| May 2030 | 6906 | 7495 |
| June 2030 | 7044 | 7615 |
| July 2030 | 7282 | 7755 |
| August 2030 | 7410 | 7869 |
| September 2030 | 7494 | 8025 |
| October 2030 | 7575 | 7966 |
| November 2030 | 7640 | 8142 |
| December 2030 | 7785 | 8154 |
The share price of Sonata Software is expected to continue experiencing volatility throughout the year, with a maximum price target of Rs 8154 in December 2030 and a minimum price target of Rs 6622 in February 2030. The average price target for Sonata Software in 2030 is expected to be around Rs 7205.
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Sonata Software Share’s price target prediction for 2030 is based on the company’s financials, previous trends, and various brokerage firm reports.
Strengths of Sonata Software
The company has delivered good profit growth of 19.2% CAGR over the last 5 years.
The company has a good return on equity track record. 3 years ROE: 35.8%
The company has been maintaining a healthy dividend payout of 55.3%.
FII and DII are showing interest in the company.
Weaknesses of Sonata Software
The company has negative cash flow of -316 crore.
Promoter shareholding is lower compared to retail.
Competitor
| Company | Market Cap (Cr) | P/E Ratio |
|---|---|---|
| Persistent Sys | 56842 | 56.65 |
| Tata Elxsi | 54513 | 69.44 |
| Tata Technology | 47874 | 76.72 |
| KPIT Technologies | 41501 | 84.89 |
| Coforge | 38693 | 53.33 |
Conclusion
The brokerage house believes that strong deal wins (with 10 large deals won (YTD) and an enhanced presence in cloud and infrastructure management and life sciences should enable the company to attain its growth targets.
In the last year, Sonata Software has given more than 150% returns to its investors, while in the last 5 years, approximately 555% returns have been delivered. The company has good financials and a good track record.
Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not an investment advice