Sona BLW Precision shares jump 9%; here's what triggered the upmove

Shares of Sona BLW Precision Forgings Ltd (formerly Sona Comstar) witnessed a sharp rally in Thursday's session, jumping 8.52 per cent to hit an intraday high of Rs 494. The stock eventually settled trading 6.52 per cent higher at Rs 484.90. Despite the day's gains, the stock remains down 17.98 per cent on a year-to-date (YTD) basis.

The scrip saw heavy trading volume on BSE along with the price action, as around 50.70 lakh shares changed hands. The figure was way more than the two-week average volume of 1.41 lakh shares. Turnover on the counter came at Rs 239.06 crore, commanding a market capitalisation (m-cap) of Rs 30,147.25 crore.

The surge followed a news report, citing sources, which suggested that Sona BLW is in discussions to supply electric vehicle components to Chinese EV giant BYD. Meanwhile, both BSE and NSE have sought clarification from the company regarding the development.

The company, in response, stated, "This is in reference to news articles appeared across various mainstream media on July, 17 2025, in relation to 'the company is in advanced talks to supply electric vehicle components to Chinese EV manufacturer BYD'. In this regard, the company wish to clarify that the company is in discussions with several potential customers in India and globally in the ordinary course, for growth of its business."

At this stage, Sona BLW also said that there is no material event or information that requires disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, adding that it would make appropriate disclosures in compliance with applicable laws, as and when required.

Swati Hotkar of Nirmal Bang believes the stock has strong support at Rs 450. "On the higher side, it has the potential to hit Rs 540-550 in the near term," she told Business Today.

On the technical play, the counter traded higher than the 5-day, 10-day and 20-day simple moving averages (SMAs) but lower than the 30-day, 50-, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 52.02. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The scrip has a price-to-earnings (P/E) ratio of 51.39 against a price-to-book (P/B) value of 5.78. Earnings per share (EPS) stood at 9.32 with a return on equity (RoE) of 11.25. According to Trendlyne data, Sona BLW has a one-year beta of 1.1, indicating high volatility.

As of March 2025, promoters held a 28.02 per cent stake in the company.