Sona BLW Precision Forgings Ltd. (IN:SONACOMS)
:SONACOMS
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Sona BLW Precision Forgings Ltd.
(SONACOMS)
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Rating:75Outperform
Price Target:
₹682.00
▲(14.72% Upside)
Action:Reiterated
Date:05/02/26
The score is driven primarily by strong fundamentals (growth, profitability, and a low-leverage balance sheet), partially offset by weaker 2026 cash-flow conversion. Technicals are supportive with a clear uptrend, though short-term indicators look stretched. Valuation is the main constraint due to the high P/E and low dividend yield.
Positive Factors
Strong multi-year revenue growth
Sustained high revenue growth through 2022–2026 indicates repeat program wins and deeper penetration with OEMs and Tier‑1s. Recurring, production-linked sales improve capacity utilization and allow fixed-cost absorption, supporting durable operating leverage and scalable profits over months to years.
Negative Factors
Weakened 2026 cash conversion
Cash conversion weakening in 2026—OCF below net income and FCF ~33% of net income—signals working‑capital or investment drag. Reduced cash conversion limits internal funding for capex and program ramp costs, increasing reliance on external financing and heightening sensitivity to cyclical cash swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong multi-year revenue growth
Sustained high revenue growth through 2022–2026 indicates repeat program wins and deeper penetration with OEMs and Tier‑1s. Recurring, production-linked sales improve capacity utilization and allow fixed-cost absorption, supporting durable operating leverage and scalable profits over months to years.
Read all positive factors
Sona BLW Precision Forgings Ltd. (SONACOMS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹353.12B
Dividend Yield0.65%
Average Volume (3M)183.08K
Price to Earnings (P/E)39.0
Beta (1Y)1.15
Revenue Growth25.80%
EPS Growth3.90%
CountryIN
Employees1,672
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)9.86
Shares Outstanding621,857,600
10 Day Avg. Volume275,144
30 Day Avg. Volume183,076
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
₹597.50Price Target Upside0.50% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)12.97
Revenue Forecast (FY)₹54.10B
Sona BLW Precision Forgings Ltd. Business Overview & Revenue Model
Company Description
Sona BLW Precision Forgings Limited designs, manufactures, and supplies systems and components for the automotive industry in India and internationally. The company offers traction motors, controllers, differential bevel gears, differential assemb...
How the Company Makes Money
The company primarily makes money by manufacturing and supplying automotive components to customers (typically OEMs and Tier-1 suppliers) under production supply contracts. Revenue is generated from: (1) sale of driveline and differential-related ...
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 | 10.81B | 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
Positive
594.50
Price Trends
546.33
Positive
521.48
Positive
490.43
Positive
Market Momentum
8.12
Positive
55.98
Neutral
46.60
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 594.5 is above the 20-day moving average (MA) of 584.01, above the 50-day MA of 546.33, and above the 200-day MA of 490.43, indicating a bullish trend. The MACD of 8.12 indicates Positive momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 46.60 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹353.12B | 38.96 | ― | 0.65% | 25.80% | 3.90% | |
71 Outperform | ₹189.27B | 39.99 | ― | 0.75% | 8.74% | -2.07% | |
66 Neutral | ₹169.18B | 39.31 | ― | 0.47% | 13.23% | 24.72% | |
62 Neutral | ₹523.26B | 50.99 | ― | 0.48% | 2.87% | 13.55% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ₹155.11B | 63.58 | ― | ― | 22.31% | 14.98% | |
50 Neutral | ₹102.14B | 37.75 | ― | 0.38% | 3.88% | -85.35% |
* Consumer Cyclical Sector Average
IN:SONACOMS
Sona BLW Precision Forgings Ltd.
579.50
57.80
11.08%
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IN:RKFORGE
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567.55
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11.99%
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.