Motilal Oswal's research report on SONA BLW Precision Forging
2QFY23 beat in performance was led by stronger revenues and lower cost despite multiple headwinds (weakness in EU/China). Strong order book, addition of new products, and stability in commodity prices are expected to drive strong growth for SONACOMS. We increase our FY23E EPS by ~3% to factor in for tighter cost control, while we lower FY24E EPS by ~2% to account for uncertainties in EU/China markets.
Outlook
We reiterate our Neutral rating due to rich valuations, with a TP of INR520 (45x Sep-24 consol EPS).
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