Sona BLW Precision Forgings Ltd: A Decade-Long Investment Perspective

Company Overview

Sona BLW Precision Forgings Ltd, also known as Sona Comstar, is a leading automotive technology company specializing in the design, manufacturing, and supply of highly engineered, mission-critical automotive systems and components. The company serves both electrified and non-electrified powertrain segments, with a significant focus on electric vehicle (EV) components.

Growth Potential

Sona BLW has demonstrated robust growth, driven by its strategic focus on the EV market. The company has a strong order book of ₹21,500 crore, with plans to execute 70% of this within the next five years 2. The EV segment, which currently contributes around 27% of the company's revenue, is expected to grow to 45-50% by FY2026 2. This growth is supported by new orders from North American OEMs and the company's expanding product capabilities in the EV space.

Valuations

As of April 2025, Sona BLW's stock is trading at around ₹451.70. The company has a market capitalization of ₹28,083 crore and a price-to-earnings (PE) ratio of 46.06. The forward PE ratio is 37.01, indicating expectations of continued earnings growth. The price-to-book (PB) ratio stands at 5.22, reflecting the company's strong asset base. Despite a recent price target cut by Citi to ₹570, the long-term outlook remains positive due to the company's strong order book and diversification

Order Book

Sona BLW's order book is a key differentiator, with a net value of ₹21,500 crore. The company has secured significant orders in the EV segment, which is expected to drive future growth. The order book includes a new order worth ₹501 crore from North American OEMs, highlighting the company's growing presence in international markets. The execution of this order book is expected to sustain the company's growth trajectory over the next decade.

As of 21st Apr 2025, Valuations are as follows

Here is the brokerage view over the company.

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