This auto ancillary stock is up by 5.63 percent after the company reported 34 percent growth in profit and 20 percent growth in revenue. The company has a market capitalization of Rs. 30,069 crores.
At 01:10, 26th October shares of Sona Blw Precision Forgings Ltd were trading at Rs. 541.55, up by 5.63 percent from previous closing price of Rs. 512.75.
Such bullish stock price movements were observed after the company reported results for Q2FY24 in which revenue grew by 20 percent to Rs. 791 crores, profit after tax (PAT) increased by 34 percent to Rs. 124 crores compared to the same quarter of previous financial year.
Moreover, the company’s revenue share from battery electric vehicles is now at 27 percent, 58 percent growth YOY. The company has a net order book of Rs. 22,100 crores in which EV programs contribute 78 percent as of September 30, 2023.
Jefferies group, an American multinational independent investment bank and financial services company has maintained a buy target for Sona Blw Precision Forgings Ltd has given target price of Rs. 700 per share.
Looking at the profitability ratios, Sona Blw Precision Forgings Ltd has an average ROE(3 years) of 18.95 percent and average ROCE (3 years) of 22.98 percent.
Sona BLW Precision Forgings Limited is an India-based company, which is engaged in the manufacturing of precision forged bevel gears and differential case assemblies for automotive and other applications.
Written by: Vinit Israni
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