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Sona BLW Precision Forgings Ltd.
(SONACOMS)
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Rating:73Outperform
Price Target:
₹883.00
▲(48.53% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong fundamentals (robust growth, solid profitability, and low leverage), partially offset by weaker recent cash-flow conversion. Technicals support the uptrend, but very overbought readings increase near-term risk. Valuation is the largest headwind due to a high P/E and low dividend yield.
Positive Factors
Sustained revenue and profitability
Consistent multi-year revenue growth and sustained net margins (~14–17%) indicate durable demand for the company’s components and effective pricing/operational leverage. This supports long-term cash generation and the ability to fund capacity, R&D and program qualifications over 2–6 months and beyond.
Negative Factors
Weakened cash-flow conversion
A sharp decline in cash conversion (OCF <1x net income; FCF ~33% of income) points to working-capital or investment drag that reduces internal funding capacity. This volatility can limit dividend or buyback capacity and raises funding risk for accelerated capex or program ramp-ups over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue and profitability
Consistent multi-year revenue growth and sustained net margins (~14–17%) indicate durable demand for the company’s components and effective pricing/operational leverage. This supports long-term cash generation and the ability to fund capacity, R&D and program qualifications over 2–6 months and beyond.
Read all positive factors
Sona BLW Precision Forgings Ltd. (SONACOMS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹492.41B
Dividend Yield0.43%
Average Volume (3M)182.45K
Price to Earnings (P/E)70.4
Beta (1Y)1.23
Revenue Growth39.56%
EPS Growth17.82%
CountryIN
Employees2,221
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)9.86
Shares Outstanding624,128,400
10 Day Avg. Volume149,104
30 Day Avg. Volume182,451
Financial Highlights & Ratios
PEG Ratio12.20
Price to Book (P/B)5.00
Price to Sales (P/S)6.73
P/FCF Ratio105.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹725.00Price Target Upside21.95% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)13.46
Revenue Forecast (FY)₹56.16B
Sona BLW Precision Forgings Ltd. Business Overview & Revenue Model
Company Description
Sona BLW Precision Forgings Limited operates as an international automotive technology firm, engaged in the conceptualization, manufacturing, and global supply of a diverse range of systems and components. Their extensive product lineup includes a...
How the Company Makes Money
SONACOMS makes money mainly by manufacturing and selling engineered automotive components to customers (primarily automotive OEMs and Tier-1 suppliers) under supply contracts and purchase orders. Revenue is generated from (1) sale of precision-for...
Sona BLW Precision Forgings Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.25B | 44.49B | 35.46B | 31.85B | 26.55B | 21.10B |
| Gross Profit | 18.03B | 16.31B | 19.38B | 17.52B | 13.79B | 11.17B |
| EBITDA | 9.29B | 11.53B | 9.26B | 8.63B | 6.40B | 5.05B |
| Net Income | 6.13B | 6.40B | 6.01B | 5.17B | 3.95B | 3.62B |
Balance Sheet | ||||||
| Total Assets | 68.73B | 74.64B | 65.37B | 38.65B | 30.60B | 25.96B |
| Cash, Cash Equivalents and Short-Term Investments | 5.77B | 8.48B | 26.28B | 3.06B | 2.98B | 838.21M |
| Total Debt | 2.11B | 4.42B | 2.02B | 4.12B | 2.95B | 1.51B |
| Total Liabilities | 10.08B | 13.32B | 8.92B | 10.65B | 7.70B | 5.95B |
| Stockholders Equity | 57.13B | 59.83B | 54.95B | 26.50B | 22.90B | 20.00B |
Cash Flow | ||||||
| Free Cash Flow | 321.63M | 2.83B | 3.58B | 3.73B | 1.98B | 973.68M |
| Operating Cash Flow | 3.40B | 7.75B | 7.75B | 6.93B | 5.33B | 4.45B |
| Investing Cash Flow | -11.58B | -16.89B | -17.65B | -4.72B | -5.63B | -3.53B |
| Financing Cash Flow | -1.16B | 7.68M | 19.44B | -1.75B | 187.45M | -636.60M |
Sona BLW Precision Forgings Ltd. Technical Analysis
Neutral
594.50
Price Trends
762.82
Positive
679.99
Positive
590.93
Positive
Market Momentum
7.65
Positive
49.59
Neutral
47.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SONACOMS, the sentiment is Neutral. The current price of 594.5 is below the 20-day moving average (MA) of 805.91, below the 50-day MA of 762.82, and above the 200-day MA of 590.93, indicating a neutral trend. The MACD of 7.65 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 47.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SONACOMS.
Sona BLW Precision Forgings Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹492.41B | 70.36 | ― | 0.43% | 39.56% | 17.82% | |
70 Outperform | ₹379.33B | 39.05 | ― | 0.43% | 29.35% | 12.93% | |
68 Neutral | ₹143.95B | 15.95 | ― | 1.85% | 12.50% | 14.31% | |
68 Neutral | ₹617.20B | 49.28 | ― | 0.89% | 19.66% | 23.81% | |
63 Neutral | ₹927.49B | 131.68 | ― | 0.44% | 17.54% | -31.63% | |
62 Neutral | ₹37.61B | 31.58 | ― | 1.18% | 42.06% | 323.98% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:SONACOMS
Sona BLW Precision Forgings Ltd.
788.95
357.86
83.01%
IN:BHARATFORG
Bharat Forge Ltd
1,940.00
707.55
57.41%
IN:CIEINDIA
CIE Automotive India Ltd
379.45
-20.01
-5.01%
IN:ENDURANCE
Endurance Technologies Ltd.
2,696.75
-156.65
-5.49%
IN:RML
Rane (Madras) Limited
1,360.75
530.20
63.84%
IN:SCHAEFFLER
Schaeffler India Ltd
3,948.75
-36.57
-0.92%
Sona BLW Precision Forgings Ltd. Corporate Events
Sona Comstar posts record Q1, unveils decade-long growth plan and Robotics push
Jul 23, 2026
Sona Comstar reported its highest-ever quarterly performance for Q1 FY27, with revenue rising 54% year-on-year to Rs. 1,310 crore and BEV revenue more than doubling to drive a record 44% share of total automotive sales. Profitability remained stro...
India Ratings Affirms Sona BLW Precision Forgings at IND AA+ with Stable Outlook
Jun 25, 2026
India Ratings Research has affirmed Sona BLW Precision Forgings Ltd.’s bank loan facilities rating at IND AA+ with a Stable outlook and IND A1+ for short-term facilities, while noting the reduction of its rated bank facilities to INR 7,250 ...
Sona BLW Clears ₹626 Million Robotics Capex, Reshuffles Key Compliance Roles
Jun 16, 2026
Sona BLW Precision Forgings Ltd. has approved a capital expenditure of INR 626 million to establish manufacturing capabilities for components and systems serving the robotics industry, including advanced robotics, marking a strategic diversificati...
Sona Comstar Approves ₹626 Million Robotics Capex, Reshuffles Key Compliance Roles
Jun 16, 2026
Sona BLW Precision Forgings Ltd. has approved capital expenditure of ₹626 million to establish manufacturing capabilities for components and systems serving the robotics industry, including advanced robotics, marking a strategic diversificat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.