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

• Market Cap: ₹287.36B
• Dividend Yield: 0.71%
• Average Volume (3M): 183.08K
• Price to Earnings (P/E): 48.7
• Beta (1Y): 1.03
• Revenue Growth: 5.20%
• EPS Growth: 1.76%
• Country: IN
• Employees: 1,672
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 2.10
• 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: ₹511.57
• Price Target Upside: 10.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: ₹498.00 ▲(7.75% Upside)

Sona BLW Precision Forgings Ltd. has a strong financial foundation with consistent growth and solid cash flow management, which is the most significant factor in the overall score. However, technical indicators suggest mixed market sentiment, and the valuation appears high, which tempers the overall score.

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 assemblies, spool gears, integrated motor controller modules, drive motors, hub wheel motors, e-axles, starter motors, belt starter generators, reverse idlers, portal axle gears, couplings/sleeves, conventional and micro-hybrid starter motors, BSG systems, epicyclic geartrains/gears, inter-axle gear sets, EV traction motors, and motor control units. Its products are used in passenger and commercial, as well as off-highway vehicles; and conventional and electric cars, and two and three wheelers. The company was formerly known as Sona Okegawa Precision Forgings Ltd. and changed its name to Sona BLW Precision Forgings Limited in 2013. The company was incorporated in 1995 and is headquartered in Gurugram, India.

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 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	30.82B	26.32B	21.10B	15.16B
Gross Profit	18.22B	20.01B	8.45B	14.35B	4.94B	7.60B
EBITDA	10.08B	9.67B	9.14B	7.04B	5.92B	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: 462.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 462.2 is above the 20-day moving average (MA) of 426.53, above the 50-day MA of 437.65, and below the 200-day MA of 484.51, indicating a neutral trend. The MACD of 5.35 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 88.48 is Negative, 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	70 Outperform	₹287.36B	48.66	―	0.71%	5.20%	1.76%
ELGIEQUIP	66 Neutral	₹147.65B	40.59	―	0.47%	8.53%	11.95%
THERMAX	65 Neutral	₹374.47B	52.76	―	0.45%	8.14%	-4.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TRITURBINE	60 Neutral	₹165.73B	48.50	―	0.77%	9.94%	18.47%
JYOTICNC	58 Neutral	₹209.95B	62.39	―	―	25.05%	48.34%
RKFORGE	51 Neutral	₹96.85B	23.00	―	0.37%	0.55%	17.34%

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.