Stocks of Sona BLW Precision Forgings opened their trading hour today at Rs 511.90 and are currently trading at Rs 507, showing a downfall of around 5 percent as compared to the previous closing price of Rs 533.10. The company has a market capitalization of Rs 29,665 crores.
Such sharp movements in the stock prices are observed after a buzz was created around the company pertaining to a stake sale.
According to reports, around 2 crore shares, equating to a 3.7 percent stake, exchanged hands on the bourses at Rs 507 per share which is a discount of around 5 percent from Tuesday’s closing price. The deal value sums up to around Rs 1,093 crore. Parties to the deal have not been publicly disclosed.
Sona BLW Precision Forgings Limited is an India-based automotive technology company that is primarily engaged in designing, manufacturing, and supplying critical high-quality automotive components such as gears, differential assemblies, etc. Geographically, the company derives a majority of its revenue from operations outside India.
At the start of this month, the company released its financial results for the last quarter as well as the Annual period of FY2022-23. Moreover, the company’s Board also recommended a Final dividend of Rs 1.53 (15.3 percent of its Face Value of Rs 10) for the same financial year. Payment of the same is subject to shareholder approval.
Having a quick walkthrough of the QoQ financials reported, the company was successful in marking an increase in the basic operational metrics such as the operating revenues and net profits. Operating revenues increased from Rs 675 crores in Q3 to Rs 743 crores in Q4. Moreover, the net profits, keeping the timeframe the same, rose from Rs 107 crores to Rs 120 crores.
Having a yearly comparison of the above-mentioned metrics, the operating revenues improved from Rs 2,110 crores during FY21-22 to Rs 2,655 crores in FY22-23 representing an increase of about 26 percent. In congruence with the pattern shown above, the net profits increased from Rs 362 crores to Rs 395 crores.
The latest shareholding data exhibits that the Promoters of the company hold a 33 percent stake, and Foreign Institutional Investors (FIIs) hold a 24.69 percent stake in the company.
Written by Amit Madnani
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