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Buy Sonata Software; target of Rs 230: Anand Rathi

Anand Rathi is bullish on Sonata Software has recommended buy rating on the stock with a target price of Rs 230 in its research report dated May 13, 2020.

May 16, 2020 / 03:37 PM IST
 
 
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Anand Rathi 's research report on Sonata Software

Sonata’s $44.4m Q4 revenue (down 5.1% q/q, up 2.1%y/y) reflects weakness in the Travel vertical, with one of the top accounts holding back 85% of the workload. The company expects revenue/profit to drop 15%/40% in H1, then gradually recover in H2. The Q4 EBIT margin (9.3%), up 119bps q/q, down 79bps y/y, reflects the revenue trajectory ahead. We trimour FY21e/FY22e and TP. Negatives seem priced in.

Outlook

We retain a Buy with an unchanged multiple (10x FY22e EPS).

For all recommendations report, click here

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first published: May 16, 2020 03:37 pm

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