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.

Author

Firstcall India Investment Banking of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.