Sona BLW Precision shares gain after three sessions as Angel One sees 60% upside

Shares of Sona BLW Precision gained after three days of consecutive fall today after brokerage Angel One assigned a buy call to the automotive systems and components manufacturer expecting a 60% upside .

The brokerage assigned a target of Rs 700 against the current market price of Rs 438. Shares of Sona BLW Precision rose 3.06% to Rs 451 today against the previous close of Rs 437.60 on BSE.  

Sona BLW Precision shares were trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.  

The stock opened higher at Rs 440 against the previous close of Rs 437.60 on BSE. However, the stock has lost 45.64% in a year and fallen 39.79% in 2022.  

Total 0.61 lakh shares of the firm changed hands amounting to a turnover of Rs 2.71 crore in the morning session. Market cap of the firm rose to Rs 26,150 crore on BSE. 

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“Sona BLW derives 40% of its revenues from Battery Electric Vehicles (BEV) and Hybrid Vehicles. It supplies EV differential assemblies and gears, BSG systems, and EV traction motors to global customers. 75% of their income from the sale of goods in FY21 came from end-use in the overseas markets. This global BEV segment has been fastest growing and is expected to maintain high growth rates which are positive for Sona BLW. Sona BLW has a strong market share ranging from 55-90% for differential gears for PV, CV, and tractor OEMs in India. The company's combined motor and driveline capabilities have enabled them to gain market share across its products, especially for products related to EV/BEV. Given the traction in the BEV/Hybrid Vehicle space, we believe that Sona Comstar will continue to command a higher multiple which is justified by 49% earnings CAGR over FY21-24E,” said Angel One in a note.  

Sona BLW Precision Forgings operates as an automotive systems and components manufacturer. The company offers differential assemblies, gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors, and motor control units. Sona BLW Precision Forgings serves automotive sector worldwide.