Sona Comstar Shares Gain After Reporting Its Highest Quarterly Revenue In Q4

Shares of Sona BLW Precision Forgings Ltd. rose on Thursday after the company reported its highest quarterly revenue, Ebitda, and net profit in the fourth quarter.

The company's fourth-quarter consolidated net profit rose 14% year-on-year to Rs 119.8 crore, beating analysts' estimates of Rs 106.9 crore. Its revenue rose 43% year-on-year to Rs 742.59 crore, beating Bloomberg's estimate of Rs 714.2 crore.

"We achieved our highest quarterly revenue, Ebitda, and net profit in Q4 FY23. BEV revenue grew 37% year-on-year to cross Rs 200 crore, representing 28% of overall revenue. 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, group chief executive officer and managing director, in an exchange filing.

Sona BLW Precision Forgings Q4 FY23 (Consolidated, YoY)

• Revenue is up 43% at Rs 742.59 crore. (Bloomberg estimate: Rs 714.2 crore.).

• Ebitda is up 94% at Rs 200 crore. (Bloomberg estimate: Rs 191.3 crore.)

• Ebitda margin at 26.9% vs. 19.9% (Bloomberg estimate: 26.8%).

• Net profit is up 14% at Rs 119.8 crore. (Bloomberg estimate: Rs 106.9 crore.)

• The board recommended a final dividend of Rs 1.53 for the financial year 2022–23.

• "Achieved highest quarterly revenue, Ebitda, and net profit in Q4 FY23," says Vivek Vikram Singh, MD and Group CEO.

As of 10:37 a.m., shares of Sona BLW Precision Forgings rose 0.85% to Rs 493.65 apiece, compared to a 0.25% advance in the NSE Nifty 50.

The stock rose as much as 3.65% intraday, the most in over three days since April 28. Total traded volume stood at 3.6 times its 30-day average. The relative strength index was at 71, implying that the stock may be overbought.

Out of the 17 analysts tracking the company, 11 maintain a 'buy' rating, two recommend a 'hold' and four suggest a 'sell' on the stock, according to Bloomberg data.

The average calculated from the 12-month price target given by analysts implies a potential upside of 9%.