Auto Components
Sona BLW Precision Forgings is an auto components and equipment company listed under the stock ticker SONACOMS, with a market capitalization of Rs. 32,165.7 Crores.
The company specializes in designing, manufacturing, and supplying systems and components for the automotive industry both in India and internationally. Its product range includes:
These products cater to various applications, including conventional and electric passenger vehicles, commercial vehicles, off-highway vehicles, and electric two and three-wheelers.
Originally incorporated in 1995 as Sona Okegawa Precision Forgings Ltd., the company rebranded to Sona BLW Precision Forgings Limited in 2013 and is headquartered in Gurugram, India.
In terms of financial performance, Sona BLW Precision Forgings reported trailing twelve months revenue of Rs. 3,653.6 Crores and a profit of Rs. 584.1 Crores over the past four quarters. The company achieved a 19.2% growth in revenue over the last year. Additionally, it distributes dividends to its investors with a yield of 0.6% per year, having returned Rs. 3.13 in dividend per share over the past twelve months. However, it should be noted that the company has diluted shareholder holdings over the past three years by 6.3%.
Profitability: Very strong Profitability. One year profit margin are 16%.
Smart Money: Smart money has been increasing their position in the stock.
Insider Trading: There's significant insider buying recently.
Growth: Good revenue growth. With NA% growth over past three years, the company is going strong.
Size: Market Cap wise it is among the top 20% companies of india.
Technicals: Bullish SharesGuru indicator.
Balance Sheet: Strong Balance Sheet.
Momentum: Stock has a weak negative price momentum.
Comprehensive comparison against sector averages
SONACOMS metrics compared to Auto
Category | SONACOMS | Auto |
---|---|---|
PE | 48.27 | 34.42 |
PS | 7.72 | 1.98 |
Growth | 19.2 % | 7.8 % |
SONACOMS vs Auto (2022 - 2025)
Summary of Sona BLW Precision Forgings's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
Management Outlook:
Sona Comstar anticipates near-term challenges in Q4 FY25 due to temporary factors like inventory corrections in North America, weak European demand, and a customer's model transition impacting Jan-Feb supplies. However, these issues are expected to normalize by March, with lost revenues recovering over the next two quarters. Long-term growth remains robust, driven by electrification (EV revenue hit a record 39% share in Q3, up 48% YoY) and a strong orderbook (Rs.232 billion, 76% EV).
Key Points:
Risks: Weakness in Europe, US commercial/off-highway segments, and near-term model transition disruptions. Management remains confident in long-term EV growth, leveraging India's EV momentum and global market share gains.
Last updated: Jan 25
Question 1: BEV Revenue Growth and Orderbook Conversion
Full Text: "You mentioned BEV revenue growth and inventory correction at your customer end. Are BEV models underperforming, delaying orderbook conversion? Do you still expect revenues to double in three years, excluding acquisitions?"
Answer Summary: Management clarified that orderbook delays (6"“12 months) do not alter the total quantum but shift timelines. BEV growth remains strong (48% YoY in Q3), driven by EV traction motors and differential assemblies. Revenue doubling in three years includes inorganic growth, but strategic focus on electrification and market share expansion (e.g., differential gear global share up to 8.8%) supports confidence.
Question 2: China Market Strategy and OEM Selection
Full Text: "How do you plan to diversify into China, and what criteria guide OEM selection given market fragmentation and risks?"
Answer Summary: Sona Comstar prioritizes EV-focused OEMs in China but acknowledges duty barriers (8"“10%) and competition. The company's China strategy centers on leveraging its existing motor plant for suspension motors and exploring localized partnerships. No explicit customer selection criteria; instead, it focuses on aligning with OEMs valuing its EV product portfolio.
Question 3: US Tariff Risks and Mexico Plant
Full Text: "How do potential US tariffs impact your Mexico plant and 40% US revenue exposure?"
Answer Summary: Management downplays tariff risks, citing lower auto component duties (2.5"“15%) and the impracticality of reshoring production. The Mexico plant initially serves local demand, minimizing tariff exposure. Sona's asset-light model allows flexibility to relocate machinery if needed, but current plans remain unchanged.
Question 4: Europe's Contribution to Orderbook
Full Text: "What percentage of the orderbook is from Europe?"
Answer Summary: Europe's contribution to the orderbook is "relatively small" due to weak OEM RFQs and slower EV adoption. Emphasis remains on North America (43% revenue) and India (28%), with Europe's share declining to 23% amid macroeconomic challenges.
Question 5: Q4 Weakness and FY26 Outlook
Full Text: "How does customer model refresh destocking affect Q4 and FY26 revenue conversion?"
Answer Summary: Q4 weakness stems from a customer's model transition, shifting some revenue to FY26. Orderbook conversions are progressing, with Indian EV programs starting in late CY25 and delays limited to select European/Indian OEMs. Suspension motor revenue is nascent but has long-term potential as adoption grows.
Question 6: Suspension Motor Revenue Potential
Full Text: "What is the revenue potential for suspension motors, given commercialization delays?"
Answer Summary: Suspension motors (0.2% of revenue) are in early production for premium EVs (e.g., Nio ET9). Total addressable market is ~$14 billion, with growth tied to adoption in premium segments. Sona supplies critical components (motor, controller, software) and expects this to become a major revenue driver in 4"“5 years.
Question 7: EV Demand Risks from Legacy OEMs
Full Text: "Could legacy OEMs' EV program cuts hurt orderbooks amid Chinese competition?"
Answer Summary: Exposure to struggling European legacy OEMs is minimal. Sona focuses on pure-play EV makers and benefits from ICE/hybrid demand (starter motors) alongside EV growth. Chinese OEM expansion outside China is an opportunity, though market entry strategies are under evaluation.
Question 8: Suspension Motor IP and ClearMotion Stake
Full Text: "Explain suspension motor IP challenges and ClearMotion stake details."
Answer Summary: The motor integrates compact design, AUTOSAR compliance, and sub-millisecond response times. Sona holds ~1.5% stake in ClearMotion, supplying critical hardware/software. IP includes high-temperature, vibration-resistant engineering. Early adoption in premium EVs is expected to scale with OEM partnerships.
Valuation | |
---|---|
Market Cap | 28.79 kCr |
Price/Earnings (Trailing) | 49.29 |
Price/Sales (Trailing) | 7.88 |
EV/EBITDA | 27.31 |
Price/Free Cashflow | 110.85 |
MarketCap/EBT | 37.28 |
Fundamentals | |
---|---|
Revenue (TTM) | 3.65 kCr |
Rev. Growth (Yr) | 17.04% |
Rev. Growth (Qtr) | -3.32% |
Earnings (TTM) | 584.08 Cr |
Earnings Growth (Yr) | 12.81% |
Earnings Growth (Qtr) | 4.97% |
Profitability | |
---|---|
Operating Margin | 21.59% |
EBT Margin | 21.14% |
Return on Equity | 10.85% |
Return on Assets | 9.29% |
Free Cashflow Yield | 0.90% |
Investor Care | |
---|---|
Dividend Yield | 0.68% |
Dividend/Share (TTM) | 3.13 |
Shares Dilution (1Y) | 5.97% |
Diluted EPS (TTM) | 9.8 |
Financial Health | |
---|---|
Current Ratio | 6.51 |
Debt/Equity | 0 |
Debt/Cashflow | 77.79 |
Understand Sona BLW Precision Forgings ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
AUREUS INVESTMENT PRIVATE LIMITED | 28.02% |
SBI LONG TERM ADVANTAGE FUND | 8.62% |
GOVERNMENT OF SINGAPORE | 6.84% |
ICICI PRUDENTIAL LARGE & MID CAP FUND | 3.65% |
MIRAE ASSET FOCUSED FUND | 3.48% |
AXIS MUTUAL FUND TRUSTEE LIMITED | 2.93% |
MONETARY AUTHORITY OF SINGAPORE | 1.66% |
CANARA ROBECO MUTUAL FUND | 1.65% |
ADITYA BIRLA SUN LIFE TRUSTEE PRIVATE LIMITED | 1.59% |
HDFC MUTUAL FUND | 1.58% |
HDFC LIFE INSURANCE COMPANY LIMITED | 1.47% |
NIPPON LIFE INDIA TRUSTEE LTD | 1.2% |
RANI KAPUR - RK FAMILY TRUST | 0% |
ASHOK SACHDEV | 0% |
JASBIR SACHDEV | 0% |
CHARU SACHDEV | 0% |
RAGHUVANSHI INVESTMENT PVT LTD | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Sona BLW Precision Forgings against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
BHARATFORG | Bharat ForgeAuto Components & Equipments | 53.41 kCr | 15.64 kCr | -7.98% | -17.03% | 62.26 | 3.41 | +1.71% | +5.79% |
SCHAEFFLER | Schaeffler IndiaAuto Components & Equipments | 51.39 kCr | 8.35 kCr | -8.86% | -2.52% | 54.74 | 6.15 | +13.60% | +3.54% |
ENDURANCE | Endurance TechAuto Components & Equipments | 26.85 kCr | 11.39 kCr | -3.85% | -1.80% | 33.51 | 2.36 | +15.41% | +32.07% |
SUNDRMFAST | Sundram FastenersAuto Components & Equipments | 19.34 kCr | 5.92 kCr | -1.99% | -12.15% | 35.06 | 3.27 | +4.03% | +6.36% |
RKFORGE | ramkrishna forgingsAuto Components & Equipments | 11.3 kCr | 13.89 kCr | -16.76% | -13.69% | 8.3 | 0.81 | +262.05% | +330.54% |