Sona Comstar Q1 Results Review - Inline; Rising Trend Of EV Mix In The Business Continues: Motilal Oswal

Motilal Oswal Report

Sona BLW Precision Forging Ltd.’s Q1 FY25 operating performance was in line on all fronts. The healthy revenue/profit after tax growth of ~22%/24% YoY, despite a weak environment, stems from its growth in the BEV segment along with an effective execution of the robust order book.

The BEV segment now accounts for 33% of the revenue versus ~29% in FY24.

Sona Comstar's strong performance is evident in its attractive valuations of ~65 times/52 times FY25E/FY26E EPS, reflecting its robust EV order book and superior earnings and return profile.

However, given the demand uncertainties in its key markets and limited potential for a re-rating, we reiterate our Neutral rating with a target price of Rs 620, premised on ~45 times June-26E consolidated earnings per share.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.