Sonata Software Q3FY18: An investment idea for medium to long-term

Firstcall India Equity | Feb. 12, 2018, 4:28 p.m.

Outlook and Valuation

At the current market price of Rs.285.50, the stock P/E ratio is at 15.46 X F Y18E and 13.93 X FY19E respectively.

Earning per share (EPS) of the company for the earnings for F Y18E and FY19E is seen at Rs. 18.47 and Rs. 20.50 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 12% over 2016 to 2019E respectively

On the basis of EV/EBITDA, the stock trades at 9.36 X for F Y18E and 8.19 X for F Y19E.

Price to Book Value of the stock is expected to be at 4.43 X and 3.47 X for F Y18E and F Y19E respectively.

Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.


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