Motilal Oswal's research report on SONA BLW Precision Forging
SONACOMS’ margin (excl. railways division) was in line with our estimate; however, PAT was ahead of estimates due to higher other income. While its long-term outlook remains positive on the back of its healthy order backlog, SONACOMS is currently witnessing the impact of a slowdown in the EV transition and weak auto demand globally. The ongoing global tariff war, weak global macro, and likely supply chain disruption, especially in EVs, remain key headwinds in the near term. Adjusted for Railways division, core business is trading at ~46.5x FY26E/39x FY27E consol, and appears fairly valued.
Outlook
Reiterate Neutral with a TP of INR468, premised on ~40x Jun’27E consol. EPS and assigning INR49 per share for the recently acquired railway business.
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