Sona BLW Share Price Sees Best Jump In Three Years After Q2 Results Beat Analysts' Estimates
Sona BLW Precision Forgings Ltd.'s share price rose as much as 10.85% to Rs 714 apiece.
Sona BLW Precision Forgings Ltd.'s share price recorded its best jump in nearly three years after the company reported higher than expected earnings for the September quarter. The company also announced its entry into rail components sector by signing a pact to acquire Escorts Kubota Ltd.’s railways equipment division.
The company posted a 17% year-on-year growth in consolidated revenue at Rs 925 crore in the quarter ended September, against expectations of Rs 894 crore. Net profit for the quarter came in at 15.7% higher than a year ago at Rs 144 crore.
In a press release, the company said that revenue grew 17% year-on-year, driven mainly by the scale-up of the EV programs.
On its pact with Escorts Kubota, it said that once completed, this acquisition will enhance its clean mobility product offerings by adding a market-leading railway components business. "The railway industry presents long-term growth opportunities, and with the Railway Equipment Division business, we see significant potential to broaden our product range by incorporating advanced technology and engineered products," it said.
ALSO READ
Sona BLW Beats Estimates With Q2 Results, Inks Pact To Acquire Escorts Kubota's Railway Business
The scrip rose as much as 10.85% to Rs 714 apiece, the highest level since Oct. 3. It pared gains to trade 9.4% higher at Rs 705.45 apiece, as of 10:52 a.m. This compares to a 0.06% decline in the NSE Nifty 50 index.
It has risen 9.5% on a year-to-date basis and 30.2% in the last 12 months. Total traded volume so far in the day stood at 5.34 times its 30-day average. The relative strength index was at 57.8.
Out of the 19 analysts tracking the company, 15 maintain a 'buy' rating, three recommend a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.8%.
