Motilal Oswal's research report on Sona BLW Precision Forging
We initiate coverage on Sona BLW Precision Forging (SONACOMS) with a Neutral rating and a TP of INR625. SONACOMS is among India’s leading automotive technology companies, with a focus on the Driveline and Electricals (Motor) segments. It supplies these products to auto OEMs globally for application in both the Electrified/Non-Electrified Powertrain segments. It has recently entered in connected vehicle technology through launch of IMCM (motor controller for smart suspension system). It has nine manufacturing and assembly facilities across India, China, Mexico, and the US, of which six are located in India. From these facilities, it supplies to six of the top 10 global PV OEMs, three of the top 10 global CV OEMs, and seven of the top eight global tractor OEMs.
Outlook
However, valuations at 77.3x/51x FY23E/FY24E consol EPS largely factor in these positives. The current stock price implies terminal growth of ~8% post FY30E. We initiate coverage with a Neutral rating and TP of INR625 (~50x FY24E consol. EPS).
More Info
At 17:30 Sona BLW Precision Forgings was quoting at Rs 636.00, down Rs 13.70, or 2.11 percent.
It has touched an intraday high of Rs 640.45 and an intraday low of Rs 615.00.
It was trading with volumes of 78,873 shares, compared to its thirty day average of 117,838 shares, a decrease of -33.07 percent.
In the previous trading session, the share closed up 8.96 percent or Rs 53.45 at Rs 649.70.
The share touched its 52-week high Rs 839.15 and 52-week low Rs 291.00 on 14 December, 2021 and 22 June, 2021, respectively.
Currently, it is trading 24.21 percent below its 52-week high and 118.56 percent above its 52-week low.
Market capitalisation stands at Rs 37,164.83 crore.
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