Case study

SONATSOFTW

Sonata Software Limited

Worth a closer look1y model +0.4%

Each stock's 10,000-path forecast, rendered as light.

67Score

Sonata Software Limited (SONATSOFTW) Stock Analysis & Case Study

Is SONATSOFTW a good buy? The data-driven verdict.

Sonata Software Limited (SONATSOFTW) trades at ₹332,on the numbers it worth a closer look, a Downstox Snapshot Score of 67/100.

On the numbers, Sonata Software Limited (SONATSOFTW) worth a closer look, a Downstox Snapshot Score of 67/100, weighing fairly valued at 18.3× earnings, ROE of 28.2%, a 50% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 2027-2031.

Last updated . Data snapshot for research, not investment advice.

SONATSOFTW fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹9,323 Cr
Current price
₹332
P/E ratio
18.3×
P/B ratio
4.89×
Book value
₹68
Dividend yield
2.38%
ROCE
30.7%
ROE
28.2%
Piotroski F-Score
6/8

How SONATSOFTW ranks against the 2,373 companies in our screener

Is SONATSOFTW overvalued? SONATSOFTW P/E vs peers

SONATSOFTW trades at 18.3× earnings. We don't have a verified sector peer group for this stock yet, so no sector peer median or peer comparison table is shown here. Showing one anyway would compare it against an arbitrary set of large-cap names, not real sector peers.

SONATSOFTW share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 9.8y of SONATSOFTW history (18%/yr drift, 46%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
SONATSOFTW 2027₹179₹319₹568+0%
SONATSOFTW 2028₹139₹320₹739+1%
SONATSOFTW 2029₹116₹322₹890+1%
SONATSOFTW 2030₹99₹323₹1,056+2%
SONATSOFTW 2031₹87₹324₹1,206+2%

Median (P50) is the central estimate; the P10-P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability SONATSOFTW goes up, or doubles?

50%
Higher in 1 year
Modelled chance the price is above today in 12 months
51%
Higher in 5 years
Modelled chance the price is above today in 5 years
26%
Doubles in 5 years
Modelled chance of reaching ₹636 within 5 years

The bull case for SONATSOFTW

  • SONATSOFTW's P/E of 17.6x is lower than 67% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
  • SONATSOFTW's return on equity of 28.2% ranks in the 93rd percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
  • SONATSOFTW's return on capital employed of 30.7% ranks in the 93rd percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
  • SONATSOFTW's dividend yield of 2.5% ranks in the 91st percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹890.

The bear case & risks

  • High historical volatility (46%/yr) means a wide, bumpy range of outcomes, size positions accordingly.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹116.

SONATSOFTW volatility & expected range, how bumpy is the ride?

Over the last 9.8 years SONATSOFTW compounded at 18%/year with annualized volatility of 46%. That volatility implies a 1-year 80% range of ₹179-₹568, the honest backbone behind any single price target.

SONATSOFTW price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 9.8 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
0.4%
80% range₹179-₹568
P(price ↑)50%
P(price 2×)6%
3-Year Forecast
2029
₹0
Median (P50)
1.1%
80% range₹116-₹890
P(price ↑)51%
P(price 2×)20%
5-Year Forecast
2031
₹0
Median (P50)
1.9%
80% range₹87-₹1,206
P(price ↑)51%
P(price 2×)26%

SONATSOFTW price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
SONATSOFTW simulated paths · 60 months · 10,000 trials
P10-P90 (80%)P25-P75 (50%)Median (P50)

Probability of key outcomes

What are the odds SONATSOFTW hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the SONATSOFTW price target & forecast page.

SONATSOFTW Piotroski F-Score: 6/8, how financially strong is it?

6/8

The Piotroski F-Score grades financial strength on profitability, leverage and efficiency checks. Downstox scores the eight checks it can verify from published filings, so 8 is full marks. SONATSOFTW scores 6/8, mixed financial health.

SONATSOFTW MTF margin & leverage across 10 brokers

Margin Trading Facility lets you buy SONATSOFTW with part of the capital. Lower margin % = higher leverage. Rates compared across 10 brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox37.58%2.7×
Zerodha37.63%2.7×
Groww37.64%2.7×
Dhan37.63%2.7×
Kotak Neo37.59%2.7×
Paytm Money37.64%2.7×
PocketfulCHEAPEST37.46%2.7×
Anand Rathi37.63%2.7×
Bajaj Broking38.00%2.6×
Share India37.64%2.7×

Compare every broker on the SONATSOFTW MTF page.

About Sonata Software Limited: sector, index & market-cap context

Sonata Software Limited (SONATSOFTW) is a small-cap NSE-listed company, and a constituent of the Nifty 500 index, with a market capitalisation of ₹9,323 Cr. See more stocks on our screener.

How the SONATSOFTW Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Sonata Software Limited's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

SONATSOFTW analysis, FAQs

Is Sonata Software Limited (SONATSOFTW) a good buy?

On the numbers, Sonata Software Limited (SONATSOFTW) worth a closer look, a Downstox Snapshot Score of 67/100, weighing fairly valued at 18.3× earnings, ROE of 28.2%, a 50% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is SONATSOFTW overvalued or undervalued?

SONATSOFTW trades at 18.3× earnings, fairly valued versus the ~22× long-run Nifty average.

What is the SONATSOFTW share price target for 2031?

SONATSOFTW's probability-weighted 2031 median target is ₹324, with an 80% range of ₹87-₹1,206 (10,000-path Monte-Carlo).

What is the probability SONATSOFTW doubles in 5 years?

The modelled probability of SONATSOFTW reaching ₹636 (2×) within 5 years is 26%.

What is the bull case for SONATSOFTW?

SONATSOFTW's P/E of 17.6x is lower than 67% of the 2,373 NSE companies in our screener, as of 9 Aug 2026. SONATSOFTW's return on equity of 28.2% ranks in the 93rd percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026. SONATSOFTW's return on capital employed of 30.7% ranks in the 93rd percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026.

What are the risks in SONATSOFTW?

High historical volatility (46%/yr) means a wide, bumpy range of outcomes, size positions accordingly.

More on SONATSOFTW