Shares of this midcap company jumps around 5 percent in Friday’s trading session after receiving auto PLI certification. The shares have delivered more than 30 percent returns to its shareholders in one year.
With a market capitalization of Rs. 37,092 crores, the shares of Sona BLW Precision Forgings Ltd started Friday’s trading session on a higher note at Rs. 642.80, gaining around 5 percent in the morning session compared to its previous close of Rs. 612.95 and are currently trading at Rs. 637 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 one of its product i.e. hub wheel drive motor for electric two-wheelers under the Production-Linked Incentive (“PLI”) Scheme for Automobile and Auto Component Industry in India (PLI-Auto) from the Ministry of Heavy Industries.
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.
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.
Coming onto the company’s financial statements, the revenue decreased marginally by around 1 percent from Rs. 787 crores during the September quarter to Rs. 782 crores in the December quarter. On a contrasting note, the net profits increased by 8 percent from Rs. 124 crores to Rs. 134 crores during the same timeframe.
The company has introduced a new product to improve electric powertrains for EV two-wheelers. Further, 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, conventional and micro-hybrid motors, 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.
