Sona BLW Precision Forgings records highest-ever revenue; stock upbeat

While filing this report, Sona BLW’s scrip traded over 1 per cent higher on BSE at Rs 494.15 apiece, and on NSE, the stock traded at Rs 493.9 apiece.

Sona BLW Precision Forgings share price: On Wednesday, May 3, 2023, Sona BLW Precision Forgings Ltd. released its results for Q4FY23, Pic-

Sona BLW Precision Forgings share price: Shares of Sona BLW Precision Forgings Ltd. (Sona Comstar) rose nearly 1 per cent on BSE after the automotive technology company registered a highest-ever growth in revenue in the quarter ending March 31, 2023.

While filing this report, Sona BLW’s scrip traded over 1 per cent higher on BSE at Rs 494.15 apiece, and on NSE, the stock traded at Rs 493.9 apiece.

On Wednesday, May 3, 2023, Sona BLW Precision Forgings Ltd. released its results for Q4FY23 which showed that the company registered a 35 per cent growth in revenue on a year-on-year (YoY) basis. The profit after tax (PAT) also grew 54 per cent YoY. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 201 crore with a margin of 27.1 per cent and 49 per cent YoY growth.

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"We achieved our highest quarterly revenue, EBITDA and net profit in Q4 FY23. BEV revenue grew 37 per cent y-o-y to cross Rs 200 crore, representing 28 per cent of overall revenues. We closed FY23 with a strong order book, which gives us the confidence to sustain growth momentum in FY24 and beyond,” said Vivek Vikram Singh, MD & Group CEO.

Singh added we will supply the final drive differential assembly, intermediate gears and input shafts for electric Class 4 CV. This win demonstrates our ability to keep adding new and higher-value-added products for our customers. On the ESG front, we made credible progress by developing and implementing an innovative solution in our forging plant at Gurgaon that helps us recycle and save around 12,000 litres of water per day.

PAT for the quarter stood at Rs 120 crore, up 54 per cent YoY and the net profit margin came in at 16.1 per cent. The EV programs contributed 77 per cent to the net order book of Rs 21,500 crore as of March 31, 2023.

s suggest?

Varinder Bansal, the founder of Omkara Capital, said that the company has been consistently recording a growth of 50 per cent to 55 per cent in gross margins and around 37 per cent growth in earnings before interest, taxes, depreciation, and amortisation (EBITDA) YoY.

Bansal added that the valuation is costly.

Further, global brokerages have given positive views on automotive technology companies.

Sona Blw Precision Forgings
Brokerage	New Rating	Old Rating	New Target	Old Target
CLSA	Underperform	Buy	511	529
JP Morgan	Underweight	-	400	-
Jefferies	Buy	-	600	575
Citi	Nuy	-	560	500
Nomura	Buy	-	573	570

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