Sonata Software Q1 Results Review - Near Term Headwinds, Long Term Attractive: IDBI Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Sonata Software Ltd. reported services revenues (up 1.2% QoQ) which were impacted due to delay in large deal in healthcare. Going forward, the company expects macro challenges which will lead to delay in decision making (elongated from three-four quarters) and in large deal closure. However, Sonata Software expects H2 FY25E to be better than H1 FY25E and confident to grow above industry in FY25E on the back of strong order book (1.24 times book to bill) and AI deals. Furthermore, management expectation of achieving $1.5 revenue mark to get deferred by couple of quarters and margin to be dilutive in near term. However, we remain positive for long term with conservative for near term. Hence, we have downgraded our EPS estimates downwards by 10% for FY25E (due to margin dilution and increase in finance cost) and increase by 3% for FY26E. Hence, we have maintained our target price to Rs 770 (28 times FY26E EPS) and we revise our rating to Hold on the stock. .Click on the attachment to read the full report:.Castrol India Q2 Results Review - Performance Inline With Expectations: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sonata Software Q1 Results Review - Near Term Headwinds, Long Term Attractive: IDBI Capital

Large deal ramp up and investment in AI and hyper-scalers related projects would impact on company's margin dilution in near term, says the brokerage.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Sonata Software Q1 Results Review - Near Term Headwinds, Long Term Attractive: IDBI Capital

Large deal ramp up and investment in AI and hyper-scalers related projects would impact on company's margin dilution in near term, says the brokerage.

Choose a plan

Follow Us

DOWNLOAD THE APP