Shares of this midcap company jumped upto 3 percent in Wednesday’s trading session after receiving certification under a PLI scheme from the Ministry of Heavy Industries. The shares have delivered around 24 percent returns to its shareholders in one year.
With a market capitalization of Rs. 37,908 crores, the shares of Sona BLW Precision Forgings Ltd started Wednesday’s trading session on a higher note at Rs. 653 compared to its previous close of Rs. 641.30. During the trading session, the shares hit a high of Rs. 664.30, gaining around 3 percent and are currently trading at Rs. 645 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received certification for its another product i.e. Traction Motor for electric three-wheelers under the Production-Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (“PLI-Auto”) from the Ministry of Heavy Industries.
Earlier, in 2021, the Government of India introduced the Auto PLI scheme to incentivise the domestic production of high-value advanced automotive technology vehicles and products. The PLI scheme for the auto and auto component sector has a budgetary outlay of Rs. 259 billion over five years, starting from FY 2023-24.
Furthermore, the company has filed seven applications for different products under the PLI scheme, and it has received the certification for its first product, a hub wheel drive motor for electric two-wheelers.
Looking at the company’s financial performance, the revenue increased by 13 percent from Rs. 782 crores during the December quarter to Rs. 884 crores in the March quarter. In addition, the net profits jumped by 10 percent from Rs. 134 crores to Rs. 148 crores during the same period.
As per the latest data, the company’s current order book stands at Rs. 22,600 crores. Of this total, 79 percent of orders originate from the electric vehicle (EV) segment, with the remaining 21 percent derived from the non-EV segment.
The company generates revenue from various geographic regions, with 40 percent originating from North America, 28 percent from India, and the remaining 32 percent from Europe, Asia (excluding India), and other global markets.
Moreover, the company is partnering with Equipmake to develop, test, validate, and launch bus motors and has scheduled to launch the Bus motor and controller for the last quarter of calendar 2025 or the first quarter of calendar 2026.
Headquartered in Gurugram, Sona BLW Precision Forgings was incorporated in 1995. The company is engaged in designing, manufacturing and supplying engineered automotive systems and components such as differential assemblies, gears, BSG systems and EV Traction motors across all vehicle categories and also develops mechanical and electrical hardware systems, components as well as base and application software solutions.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
