Sona BLW Precision Forgings Ltd. (SONACOMS) AI Stock Analysis

• Market Cap: ₹300.66B
• Dividend Yield: 0.63%
• Average Volume (3M): 183.08K
• Price to Earnings (P/E): 49.1
• Beta (1Y): 1.07
• Revenue Growth: 7.34%
• EPS Growth: 2.27%
• Country: IN
• Employees: 1,672
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 2.80
• Shares Outstanding: 621,720,950
• 10 Day Avg. Volume: 275,144
• 30 Day Avg. Volume: 183,076
• PEG Ratio: 3.76
• Price to Book (P/B): 5.08
• Price to Sales (P/S): 7.88
• P/FCF Ratio: 78.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹630.00
• Price Target Upside: 23.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹558.00 ▲(9.08% Upside)

Sona BLW Precision Forgings Ltd. demonstrates strong financial performance with consistent revenue and profit growth, supported by solid margins and a robust balance sheet. Technical indicators show bullish momentum, though caution is advised due to the high RSI. The valuation suggests the stock is overvalued, with a high P/E ratio and modest dividend yield. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Sona BLW's consistent revenue growth indicates strong demand for its products and effective market penetration, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility to invest in growth opportunities and weather economic downturns.

Cash Generation Ability

Effective cash generation supports operational needs and strategic investments, ensuring Sona BLW can sustain growth and maintain financial health.

Negative Factors

Asset Utilization

Suboptimal asset utilization may limit efficiency and profitability, suggesting the need for better asset management to enhance returns.

Free Cash Flow Decline

A decline in free cash flow growth could constrain the company's ability to fund future projects and dividends, impacting long-term financial flexibility.

Valuation Concerns

Perceived overvaluation may limit stock price appreciation and attract scrutiny, potentially affecting investor sentiment and capital raising efforts.

Sona BLW Precision Forgings Ltd. Business Overview & Revenue Model

Company Description

Sona BLW Precision Forgings Ltd. (SONACOMS) is a prominent player in the automotive components manufacturing sector, specializing in precision forgings and machining. The company primarily serves the automotive industry, providing high-quality products such as crankshafts, gears, and other critical components for both passenger and commercial vehicles. With a commitment to innovation and quality, SONACOMS leverages advanced manufacturing technologies to meet the evolving demands of its global clientele.

How the Company Makes Money

Sona BLW Precision Forgings Ltd. generates revenue through the production and sale of precision forged components primarily to the automotive sector. The company's revenue model is built on several key streams: direct sales of forged components to original equipment manufacturers (OEMs), aftermarket sales, and potential long-term contracts with major automotive brands. Significant partnerships with leading automotive companies enhance its market position and provide a steady demand for its products. Additionally, SONACOMS may benefit from economies of scale in production and strategic investments in technology, which improve operational efficiency and reduce costs, further contributing to its profitability.

Sona BLW Precision Forgings Ltd. Financial Statement Overview

Summary

Sona BLW Precision Forgings Ltd. exhibits a strong financial position across all statements. The income statement reveals consistent revenue and profit growth, supported by solid margins. The balance sheet is robust, with a low debt-to-equity ratio and strong equity position. Cash flow is healthy, with effective cash management and generation. While the company is well-positioned in terms of profitability and stability, continuous monitoring of asset utilization could enhance overall efficiency.

Income Statement

Sona BLW Precision Forgings Ltd. showcases a robust financial performance in the income statement. The company has experienced consistent revenue growth, with a notable increase from 31,505.5 million in 2024 to 35,460.2 million in 2025. Gross profit margin remains strong, indicating efficient cost management. The net profit margin is healthy, driven by increasing net income. EBIT and EBITDA margins are solid, reflecting effective operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The balance sheet of Sona BLW Precision Forgings Ltd. is stable, with a strong equity position. The debt-to-equity ratio is low, indicating lower financial leverage and risk. The return on equity is commendable, showcasing the company's ability to generate returns for shareholders. The equity ratio is favorable, highlighting the company's reliance on equity financing over debt. However, there is room for improvement in optimizing asset utilization. Overall, the balance sheet is solid, with a healthy financial structure.

Cash Flow

The cash flow statement reflects strong cash generation capabilities. The operating cash flow to net income ratio is favorable, indicating effective conversion of income into cash. Free cash flow has grown, although slightly lower than the previous year, demonstrating the company's ability to fund operations and strategic investments. The free cash flow to net income ratio is positive, showing efficient cash management. Overall, the cash flow situation is strong, with sufficient liquidity and operational cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	35.09B	35.46B	31.85B	26.55B	21.10B	15.66B
Gross Profit	19.01B	19.38B	17.52B	13.79B	11.17B	8.82B
EBITDA	8.76B	9.26B	8.63B	6.40B	5.05B	4.27B
Net Income	5.84B	6.01B	5.17B	3.95B	3.62B	2.15B
Balance Sheet
Total Assets	0.00	65.37B	38.65B	30.60B	25.96B	21.75B
Cash, Cash Equivalents and Short-Term Investments	26.29B	26.28B	3.06B	2.98B	838.21M	275.75M
Total Debt	0.00	2.02B	4.12B	2.95B	1.51B	4.45B
Total Liabilities	-56.45B	8.92B	10.65B	7.70B	5.95B	8.71B
Stockholders Equity	56.45B	54.95B	26.50B	22.90B	20.00B	13.76B
Cash Flow
Free Cash Flow	1.02B	3.58B	3.73B	1.98B	973.68M	-762.11M
Operating Cash Flow	2.18B	7.75B	6.93B	5.33B	4.45B	1.43B
Investing Cash Flow	-18.43B	-17.65B	-4.72B	-5.63B	-3.53B	-1.56B
Financing Cash Flow	20.41B	19.44B	-1.75B	187.45M	-636.60M	-666.99M

Sona BLW Precision Forgings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 511.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SONACOMS, the sentiment is Positive. The current price of 511.55 is above the 20-day moving average (MA) of 494.30, above the 50-day MA of 462.12, and above the 200-day MA of 476.24, indicating a bullish trend. The MACD of 12.13 indicates Negative momentum. The RSI at 68.51 is Neutral, neither overbought nor oversold. The STOCH value of 75.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SONACOMS.

Sona BLW Precision Forgings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONACOMS	74 Outperform	₹300.66B	49.06	―	0.63%	7.34%	2.27%
JYOTICNC	71 Outperform	₹213.75B	63.52	―	―	19.91%	22.13%
TRITURBINE	68 Neutral	₹171.04B	50.01	―	0.74%	3.49%	8.54%
ELGIEQUIP	66 Neutral	₹152.72B	41.99	―	0.44%	9.46%	18.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
THERMAX	58 Neutral	₹388.38B	54.72	―	0.48%	3.37%	-19.95%
RKFORGE	51 Neutral	₹96.68B	22.95	―	0.36%	-4.73%	-19.52%

Sona BLW Precision Forgings Ltd. Corporate Events

Sona BLW Releases Q2 Financial Results Investor Call Recording

Sona BLW Precision Forgings Ltd. announced the release of the audio/video recording of their investor call discussing the financial results for the second quarter and half-year ending September 30, 2025. The results, approved by the board, are now available for stakeholders, reflecting the company’s ongoing transparency and commitment to keeping investors informed.

Sona BLW Approves Major ESOP Grant to Boost Employee Engagement

Sona BLW Precision Forgings Ltd. announced the approval of a significant grant of 630,000 employee stock options under its ESOP 2023 plan. This decision, made by the Nomination and Remuneration Committee, is aimed at incentivizing eligible employees and aligning their interests with the company’s growth objectives. The stock options will vest over four years, starting from October 2026, with an exercise price set at the fair market value of INR 478.70 per share. This move is expected to enhance employee engagement and retention, potentially impacting the company’s operational efficiency and market positioning positively.

Sona Comstar Partners with NEURA Robotics for Advanced Robotics Development

Sona Comstar has signed a memorandum of understanding with NEURA Robotics GmbH to jointly develop advanced technologies and industrialize robots and humanoids in India and other markets. This collaboration aims to leverage the rapid advancements in artificial intelligence and robotics to transform manufacturing and logistics industries, enhancing Sona Comstar’s position in the mobility space and expanding its reach into intelligent manufacturing and service industries.