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).
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