Sonata's platformation strategy to provide IT services around IPs like Rezopia, Halosys, Brick & Click and Retina, is yielding results. Growth in IP-led revenues is improving employee productivity and aiding margin expansion. Microsoft Dynamic 365 is in hyper growth phase and Sonata being a preferred development partner is reaping benefits. Sonata strategic acquisition of Sopris and Scalable Data will enhance Dynamics 365 offerings and will support growth. We expect IITS' USD revenue to grow 15/11% with margin of 22.6/23.0% in FY20/21E. We like Sonata's IP-focussed business model, strong relationship with top-clients, high RoE (~35%) and dividend yield of ~3%. The stock trades at a P/E of 11.9x FY21E, which is reasonable (~10% discount to tier-2 IT median). Risks include high client concentration, slow down in Dynamics 365 and drop in margins due to onsite investments. We maintain BUY on Sonata based on inline 4QFY19. Robust growth in IP-led revenue (+41% YoY) and margin expansion in IITS (~483 bps in FY19) is encouraging. Our TP of Rs 480 (+34% upside) is based on 16x FY21E EPS.