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. Sonata's strategy to venture into different areas within the top-account will aid growth and reduce dependency on a single platform. We like Sonata's IP-focussed business model, high RoE (~35%) and dividend yield of ~4%. The stock trades at a P/E of 10.2x FY21E, which is inexpensive but will command higher multiple only with better receivables management. We expect IITS' USD revenue to grow 13.8/11.1% with margin of 22.6/23.0% in FY20/21E. Risks include deceleration in top-account, delay in collections and slowdown in US/Europe. We maintain BUY on Sonata based on inline revenue but slight miss on margins in 2QFY20. IP-led strategy is driving IITS growth (+9.1% 8qtr CQGR) and is aiding margin expansion (+133 bps YoY). We downgrade P/E multiple to 12x from 14x to factor in rising receivables in the DPS business. Our TP of Rs 395 is based on 12x Sep-21E EPS.