Sona BLW Q4 Results Review: Margins Hurt By Adverse Mix, Says Motilal Oswal, Maintaining 'Neutral' Stance

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Sona BLW Precision Forgings Ltd. is poised for faster-than-industry growth driven by-

1. content enhancement in the existing portfolio;

2. market share gains in key geographies; and

3. new products such as traction motors, controllers, BSG, and sensors.

Further, its focus on expanding the product portfolio, global scale, and customer base should translate into strong earnings growth and healthy capital efficiency.

However, Sona Comstar is currently witnessing the impact of a slowdown in the EV transition, with Q4 revenue/Ebitda growth at -4%/-1%. The ongoing global tariff war, weak global macro, and likely supply chain disruption – especially in EVs – remain key headwinds in the near term, which would restrict growth. Given these factors, valuations at ~49x FY26E/44x FY27E consol. EPS appears expensive.

Reiterate Neutral with a target price of Rs 490, premised on ~40x FY27E consol. EPS and assigning Rs 49 per share for the recently acquired railway business.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.