Sona BLW Q2 Review — Motilal Oswal Stays 'Neutral' Post Steady Results Amid Challenging Macro

Sona Comstar generated a cash flow from operations of Rs 3.4 billion in H1 and incurred a capex of Rs 2 billion. FCF stood at Rs 1.4 billion. Cash balance stood at Rs 10 billion as of Sep’25..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.’s consolidated revenue/Ebitda/adjusted PAT rose ~24%/13%/11% YoY to Rs 11.4 billion/Rs 2.9 billion/Rs 1.7 billion. Q2 results are not comparable to our estimates as it was the first quarter after the railway division integration, while our estimates factored in the core business. Ebitda margins fell 230bp YoY to 25.3% due to an adverse mix, lower operating leverage and the integration of the railway business.We earlier valued the railway division separately. However, given that the company would not be disclosing segmental financials, we have now integrated the railway division’s financials into our estimates. As a result, we have upgraded the earnings estimates by 27%/20% for FY26/FY27. However, this would also warrant a de-rating for the consolidated entity, in our view. Hence, we lower our target multiple for the consolidated entity to 34 times from 36 times earlier for the core. As a result, our target price now stands at Rs 448 per share (valued at 34x Sep’27E EPS). Maintain Neutral..Click on the attachment to read the full report:.Tata Steel Gets Motilal Oswal's 'Buy' Upgrade, Sees 19% Upside — Check Target Price.DISCLAIMERThis 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.

Sona BLW Q2 Review — Motilal Oswal Stays 'Neutral' Post Steady Results Amid Challenging Macro

Sona Comstar's margins improve QoQ despite railway division integration, adds the brokerage.

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