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

• Market Cap: ₹273.50B
• Dividend Yield: 0.71%
• Average Volume (3M): 316.36K
• Price to Earnings (P/E): 46.3
• Beta (1Y): 0.96
• Revenue Growth: 5.20%
• EPS Growth: 1.76%
• Country: IN
• Employees: 1,672
• Sector: Industrials
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.10
• Shares Outstanding: 621,720,950
• 10 Day Avg. Volume: 96,736
• 30 Day Avg. Volume: 316,359
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹503.38
• Price Target Upside: 12.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: ₹516.00 ▲(15.01% Upside)

The overall stock score for Sona BLW Precision Forgings Ltd. is driven primarily by its strong financial performance, reflecting robust revenue growth and profitability. However, the technical analysis and valuation point to potential risks, including mixed market momentum signals and a relatively high P/E ratio. Investors should weigh the company's financial strength against its current market valuation.

Sona BLW Precision Forgings Ltd. Business Overview & Revenue Model

Company Description

Sona BLW Precision Forgings Ltd. (SONACOMS) is a leading global automotive technology company headquartered in India. The company specializes in precision forging and integrated manufacturing processes, focusing on producing high-performance components such as differential gears, starter motors, and traction motors for electric and hybrid vehicles. Operating across multiple sectors, Sona BLW serves major automotive OEMs and Tier 1 suppliers worldwide, providing advanced engineering solutions that enhance vehicle performance and efficiency.

How the Company Makes Money

Sona BLW Precision Forgings Ltd. generates revenue primarily through the manufacturing and sale of precision-forged automotive components. The company's revenue streams are driven by its extensive product portfolio, which includes differential gears, starter motors, and traction motors, catering to both electric and hybrid vehicle markets. Sona BLW leverages long-term partnerships with leading automotive OEMs and Tier 1 suppliers, which ensure a steady demand for its products. The company's advanced engineering capabilities and focus on innovation allow it to offer high-value solutions, contributing to its financial success. Additionally, Sona BLW's global presence and strategic manufacturing locations enable it to efficiently serve clients across different regions, optimizing its supply chain and cost structure.

Sona BLW Precision Forgings Ltd. Financial Statement Overview

Summary

Sona BLW Precision Forgings Ltd. exhibits a strong financial position with consistent revenue and profit growth supported by solid margins. The balance sheet is robust, featuring a low debt-to-equity ratio and a strong equity position. Cash flow is healthy, with effective cash management and generation, indicating a positive outlook for sustained growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2022
Income Statement
Total Revenue	35.46B	31.51B	26.55B	14.92B	20.34B
Gross Profit	20.01B	17.18B	14.35B	7.60B	9.55B
EBITDA	9.67B	9.14B	7.04B	4.29B	5.92B
Net Income	6.01B	5.17B	3.95B	2.15B	3.62B
Balance Sheet
Total Assets	65.37B	38.65B	30.60B	21.75B	25.96B
Cash, Cash Equivalents and Short-Term Investments	21.20B	3.06B	2.98B	278.06M	838.21M
Total Debt	2.02B	4.12B	2.95B	4.45B	1.51B
Total Liabilities	8.92B	10.65B	7.70B	8.71B	5.95B
Stockholders Equity	54.95B	26.50B	22.90B	13.04B	20.00B
Cash Flow
Free Cash Flow	3.58B	3.73B	1.98B	-762.11M	973.68M
Operating Cash Flow	7.75B	6.93B	5.33B	1.43B	4.45B
Investing Cash Flow	-17.65B	-4.72B	-5.63B	-1.56B	-3.53B
Financing Cash Flow	19.44B	-1.75B	187.45M	-666.99M	-636.60M

Sona BLW Precision Forgings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 448.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 448.65 is below the 20-day moving average (MA) of 461.30, below the 50-day MA of 473.31, and below the 200-day MA of 533.20, indicating a bearish trend. The MACD of -8.90 indicates Positive momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 46.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
THERMAX	73 Outperform	₹392.71B	55.33		0.43%	8.14%	-4.46%
SONACOMS	70 Outperform	₹273.50B	46.31		0.71%	5.20%	1.76%
Sector *	66 Neutral	£2.67B	13.00	3.30%	3.25%	2.35%	-22.12%
ELGIEQUIP	66 Neutral	₹164.22B	45.15		0.44%	9.09%	12.31%
TRITURBINE	60 Neutral	₹164.09B	47.86		0.63%	9.94%	18.87%
JYOTICNC	55 Neutral	₹202.37B	60.15		―	25.05%	48.33%
RKFORGE	51 Neutral	₹105.62B	25.09		0.35%	0.55%	17.27%

Sona BLW Precision Forgings Ltd. Corporate Events

Sona BLW Precision Forgings Ltd. Restructures Nomination and Remuneration Committee

Sona BLW Precision Forgings Ltd. announced a reconstitution of its Nomination and Remuneration Committee (NRC) as of July 16, 2025. This restructuring involves changes in the roles of independent directors within the committee, potentially impacting the company’s governance and strategic decision-making processes.