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 consolidated EPS appears expensive.
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Motilal Oswal Report
Sona BLW Precision Forgings Ltd. is poised for faster-than-industry growth driven by-
content enhancement in the existing portfolio;
market share gains in key geographies; and
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.
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