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Share price of this mid-cap stock and a global provider of automotive technology solutions, moved up by nearly 1.71 percent to Rs. 689.65 on BSE in the morning trading session of Wednesday, compared to its previous close of Rs. 678.05, after the company received certification under PLI scheme. 

With a market capitalisation of Rs. 39,855 crores, at 12:38 p.m. the shares of Sona Blw Precision Forgings Limited were trading in the green at Rs. 679.1, up by 0.13 percent. 

The company has delivered positive returns of about 61.7 percent in the last one year and nearly 16.05 percent in the last six months. So far in 2024, it has given positive returns of around 5.1 percent. 

According to recent regulatory filings with the stock exchanges, Sona Blw Precision Forgings received certification for one of its products i.e. hub wheel motor for electric two-wheelers under the PLI Scheme for Automobile and Auto Component Industry in India (PLI-Auto) from the Ministry of Heavy Industries, for availing the benefits/incentive under PLI Scheme. 

This is the second certification that the firm has received; the first was received on February 22 of this year. The company has filed a total of seven applications for different products under the PLI scheme. 

The Production Linked Incentive (PLI) Scheme was launched by the Government of India as a means of encouraging both local and domestic production to create micro jobs as well as foreign companies to find workforce in India and create more job opportunities. 

In 2021, the government introduced the Auto PLI scheme to encourage the domestic production of advanced automotive technology vehicles and products. 

The PLI scheme for the auto and auto component sector has a budgetary outlay of Rs. 25,900 crore over five years, starting from FY 2023-24. 

In terms of financials, the company’s revenue from operations grew by nearly 15.8 percent YoY from Rs. 675 crore in Q3 FY22-23 to Rs. 782 crore in Q3 FY23-24, accompanied by an increase in the net profit by 25.2 percent from Rs. 107 crore to Rs. 134 crore during the same period. 

As of December 2023, FIIs hold 32.88 percent of the shares, while DIIs hold 27.9 percent of the shares in the company, aggregating to 60.78 percent of the institutional holdings.

Founded in 1995, Sona BLW Precision Forgings Limited (Sona Comstar) is one of the world’s leading automotive technology companies. 

It is a global supplier with manufacturing and assembly facilities, R&D centres and engineering capability centres across India, USA, Serbia, Mexico, and China. 

The company primarily designs, manufactures, and supplies highly engineered, mission-critical automotive systems and components to automotive OEMs and is a leading supplier to the fast-growing global Electric Vehicle (EV) market. 

Written by Shivani Singh 

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