Technology

Sonata Software is a global technology Company that enables successful platform based digital transformation initiatives for enterprises, to create businesses that are connected, open, intelligent and scalable. Growth in IP-led revenues is aiding margin expansion and Microsoft Dynamic 365 is in hyper growth phase. Sonata strategic acquisition of Sopris and Scalable Data will enhance Dynamics 365 offerings and will support growth. The company’s cash flow generation being constant and debt being almost nil, returns new acquisitions will further boost overall operations and cash flows. Currently the stock is trading at 13.3x of its earnings and generates 47.9% return sson capital. It also pays regular dividend of nearly 50%. Hence BUY.

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