Shares of this mid-cap stock associated with the EV sector are in focus after the company announced robust results for Q4FY24, i.e., for the quarter and financial year ending March 2024. In the past year, the company’s stock gained nearly 30 percent for its stakeholders.
With a market capitalization of Rs 36,688.17 crores, the stocks of Sona BLW Precision Forgings Limited closed its trading session on Tuesday at Rs 625.60, slipping approximately 1.70 percent compared to the previous closing level of Rs 636.35 apiece.
Through a recent regulatory filing with the Bombay Stock Exchange (BSE), the EV company announced the financial results for Q4FY24, i.e., for the quarter and financial year ending March 2024.
Sequentially, the company reported an increase in its prime indicators of business such as the operating revenues as well as after-tax profits. The former rose from Rs 782 crores during Q3FY24 to Rs 884 crores during Q4FY24, and the latter, keeping the timeframe the same, shifted up from Rs 134 crores to Rs 148 crores.
Comparing Q4FY23 v/s Q4FY24, the metrics discussed above showed decent positive movements with the operating revenue numbers increasing from Rs 743 crores to Rs 884 crores, and the bottom-line numbers, on the other end, rose by approximately 24 percent from Rs 120 crores to Rs 148 crores.
Historically, the company’s ratio analysis portrays its return ratios, viz, the return on equity (RoE) as well as the return on capital employed (RoCE), being reported at decent numbers. As per the latest data available, the company reported a RoE of 17.26 percent and a RoCE of 21.09 percent.
As per the latest shareholding pattern data available for the March’24 quarter, the company’s Promoters hold a 29.71 percent stake, and the Foreign Institutional Investors (FIIs), marginally increasing their stake, currently hold a considerable stake of 32.93 percent in the company.
According to the latest presentations, the company’s net order book stands at Rs 226 Bn with the EV segment contributing nearly 80 percent with orders of Rs 180 Bn and the remaining share of 20 percent by the Non-EV segment amounting to Rs 46 Bn.
The EV market in India is expected to witness substantial growth, with projections of valuations surging to $7.09 Bn by 2025, from the valuation levels of $2 Bn in 2023.
In addition, the Govt of India is keen on promoting EVs and aims for 30% of vehicles to be sold under the category mentioned by 2030. The Govt supports the same through various initiatives, some of which include FAME (Faster Adoption and Manufacturing of Electric Vehicles) India scheme, PLI schemes, tax deductions, and others.
Founded in 1995, Sona BLW Precision Forgings Limited is an automotive technology company based in India primarily engaged in manufacturing and supplying precision forged bevel gears, starter motors, differential case assemblies, EV traction motors, and other applications.
Written by Amit Madnani
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