Sona BLW Precision Forgings
Sona BLW Precision Forgings
Consumer Discretionary F&OKey Fundamentals
MidcapAuto ComponentsAutomobilesTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
5- Company is almost debt free.
- Company is expected to give good quarter
- Company has delivered good profit growth of 23.7% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 34.7%
- Company's median sales growth is 24.3% of last 10 years
Weaknesses
1- Stock is trading at 8.39 times its book value
Growth Rate
AI Analysis — Bull vs Bear
Sona BLW Precision Forgings (SONACOMS) is a ~₹49,336 Cr market cap auto components company trading at a PE of 73.1x and 8.37x book value. The company is virtually debt-free and has delivered 24% compounded sales CAGR over 5 years, though its ROE has moderated to 12% in the last year from a 5-year average of 15%.
- Near debt-free balance sheet provides significant financial flexibility and resilience through business cycles
- Strong revenue momentum with TTM compounded sales growth accelerating to 43%, well above the 5-year CAGR of 24%
- Consistent long-term sales track record with a median sales growth of 24.3% over the last 10 years
- Compounded profit growth of 23.7% CAGR over the last 5 years demonstrates operating leverage and margin discipline
- TTM profit growth of 37% indicates continued earnings acceleration in the near term
- Healthy dividend payout ratio of 34.7% with a current yield of 0.42%, showing shareholder-friendly capital allocation despite being in a growth phase
- Stock has returned 83% over the past 1 year, reflecting strong market recognition of the company's growth trajectory
- 10-year compounded profit CAGR of 71% highlights a long secular earnings growth story in precision auto components
- PE of 73.1x is significantly elevated compared to broader market and most auto ancillary peers, leaving little margin of safety if growth disappoints
- Price-to-book of 8.37x (or 8.55x per screener data) indicates the stock is priced for perfection with substantial premium to book value
- ROE has declined from a 5-year average of 15% to 12% in the last year, suggesting returns on equity are trending lower even as valuations remain elevated
- 3-year stock CAGR of only 11% and 5-year CAGR of 8% suggest much of the recent 83% 1-year rally may be a catch-up move rather than sustained re-rating
- 3-year compounded sales CAGR of 19% is noticeably lower than the 10-year median of 24.3%, indicating some growth moderation in recent years before the latest TTM acceleration
- At ₹49,336 Cr market cap with a PE of 73.1x, the implied earnings base is roughly ₹675 Cr — any slowdown in the 37-43% growth rates would make this valuation difficult to sustain
- Dividend yield of just 0.42% provides minimal income cushion for investors if capital appreciation stalls
- Consumer discretionary sector exposure means the company's fortunes are tied to auto demand cycles, which can be volatile and impacted by macro slowdowns
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Shareholder vote on RPTs Sep 04
Sona BLW initiated a postal ballot for approval of material related party transactions with Sona Comstar E-Drive Private Limited. E-voting window runs from Sep 4 to Oct 3, 2026.
TL;DR: Limited recent news flow for Sona BLW. The only development is a routine shareholder approval process for related party transactions with subsidiary Sona Comstar E-Drive, which is standard corporate governance. No material headwinds or positive catalysts are visible from current coverage, so the near-term narrative remains driven by broader sector trends and upcoming quarterly results.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 674 | 716 | 708 | 793 | 830 | 840 | 786 | 770 | 767 | 1,057 | 1,128 | 1,172 | 1,157 |
| Expenses | 488 | 516 | 494 | 570 | 591 | 606 | 570 | 555 | 575 | 786 | 836 | 887 | 895 |
| Operating Profit | 186 | 201 | 215 | 223 | 240 | 234 | 216 | 215 | 192 | 271 | 292 | 285 | 262 |
| OPM % | 28% | 28% | 30% | 28% | 29% | 28% | 27% | 28% | 25% | 26% | 26% | 24% | 23% |
| Other Income | 4 | 24 | -1 | 6 | 26 | 11 | 39 | 51 | 34 | 20 | -16 | 57 | 90 |
| Interest | 5 | 6 | 7 | 7 | 9 | 10 | 5 | 4 | 5 | 4 | 4 | 6 | 7 |
| Depreciation | 48 | 50 | 51 | 53 | 55 | 57 | 61 | 60 | 60 | 65 | 68 | 67 | 69 |
| PBT | 136 | 168 | 155 | 169 | 202 | 178 | 190 | 202 | 161 | 223 | 205 | 269 | 276 |
| Tax % | 26% | 22% | 22% | 23% | 23% | 26% | 26% | 25% | 26% | 25% | 25% | 23% | 20% |
| Net Profit | 102 | 130 | 122 | 131 | 155 | 132 | 141 | 152 | 120 | 166 | 153 | 207 | 220 |
| EPS in Rs | 1.74 | 2.23 | 2.08 | 2.23 | 2.64 | 2.13 | 2.26 | 2.44 | 1.93 | 2.67 | 2.46 | 3.33 | 3.54 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 346 | 365 | 503 | 609 | 699 | 539 | 1,400 | 1,918 | 2,448 | 2,892 | 3,226 | 4,124 | 4,514 |
| Expenses | 263 | 294 | 398 | 445 | 501 | 388 | 1,014 | 1,439 | 1,831 | 2,067 | 2,322 | 3,083 | 3,403 |
| Operating Profit | 82 | 72 | 105 | 164 | 198 | 151 | 387 | 479 | 617 | 825 | 904 | 1,041 | 1,110 |
| OPM % | 24% | 20% | 21% | 27% | 28% | 28% | 28% | 25% | 25% | 29% | 28% | 25% | 25% |
| Other Income | 2 | -38 | 2 | 7 | 3 | 0 | 23 | 84 | 61 | 33 | 128 | 95 | 152 |
| Interest | 22 | 18 | 19 | 18 | 16 | 23 | 32 | 17 | 16 | 25 | 28 | 19 | 21 |
| Depreciation | 19 | 17 | 17 | 22 | 29 | 34 | 86 | 130 | 167 | 203 | 233 | 260 | 269 |
| PBT | 44 | -2 | 71 | 131 | 156 | 94 | 291 | 417 | 495 | 629 | 772 | 857 | 971 |
| Tax % | 34% | 868% | 36% | 34% | 35% | 10% | 26% | 15% | 22% | 23% | 25% | 25% | — |
| Net Profit | 29 | -16 | 45 | 86 | 101 | 84 | 216 | 354 | 388 | 484 | 580 | 646 | 746 |
| EPS in Rs | 10.42 | -5.76 | 16.19 | 31.02 | 36.28 | 17.83 | 3.77 | 6.05 | 6.63 | 8.26 | 9.32 | 10.4 | 12 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 238% | 502% | 25% | 42% | 37% | 34% | 33% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 28 | 28 | 28 | 28 | 28 | 47 | 573 | 584 | 585 | 586 | 622 | 622 |
| Reserves | 183 | 167 | 212 | 298 | 399 | 1,084 | 788 | 1,389 | 1,664 | 1,988 | 4,773 | 5,220 |
| Borrowings | 156 | 149 | 158 | 161 | 145 | 330 | 443 | 147 | 291 | 388 | 150 | 363 |
| Other Liabilities | 61 | 73 | 91 | 127 | 167 | 105 | 318 | 386 | 435 | 623 | 609 | 772 |
| Total Liabilities | 428 | 416 | 489 | 614 | 738 | 1,566 | 2,122 | 2,506 | 2,976 | 3,585 | 6,154 | 6,976 |
| Fixed Assets | 125 | 124 | 105 | 165 | 275 | 364 | 1,085 | 1,261 | 1,473 | 1,597 | 1,758 | 3,264 |
| CWIP | 8 | 4 | 6 | 12 | 13 | 50 | 83 | 147 | 91 | 140 | 170 | 92 |
| Investments | 200 | 159 | 162 | 174 | 173 | 860 | 155 | 163 | 370 | 541 | 1,343 | 1,094 |
| Other Assets | 96 | 128 | 216 | 264 | 278 | 292 | 798 | 935 | 1,042 | 1,307 | 2,884 | 2,526 |
| Total Assets | 428 | 416 | 489 | 614 | 738 | 1,566 | 2,122 | 2,506 | 2,976 | 3,585 | 6,154 | 6,976 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | — | 38 | 23 | 112 | 143 | 161 | 121 | 395 | 500 | 639 | 733 | 615 |
| Investing | — | -12 | -12 | -98 | -113 | -886 | -117 | -318 | -512 | -453 | -1,737 | -1,541 |
| Financing | — | -25 | -10 | -15 | -31 | 759 | -79 | -62 | 20 | -191 | 1,938 | -3 |
| Net Cash Flow | — | 1 | 1 | 0 | -2 | 34 | -75 | 15 | 8 | -4 | 934 | -929 |
| Free Cash Flow | — | 25 | 17 | 24 | 52 | -13 | -95 | 56 | 166 | 326 | 357 | 237 |
| CFO/OP | — | 82 | 42 | 94 | 97 | 117 | 42 | 92 | 97 | 95 | 99 | 76 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 58 | 66 | 87 | 85 | 79 | 90 | 104 | 83 | 87 | 73 | 71 | 95 |
| Inventory Days | 77 | 94 | 107 | 149 | 121 | 147 | 169 | 131 | 90 | 92 | 80 | 103 |
| Days Payable | 93 | 122 | 142 | 193 | 123 | 131 | 128 | 81 | 77 | 80 | 76 | 78 |
| Cash Conversion Cycle | 42 | 38 | 52 | 41 | 77 | 106 | 145 | 133 | 100 | 86 | 75 | 121 |
| Working Capital Days | -31 | -52 | 31 | 79 | 6 | 3 | 77 | 88 | 58 | 39 | 117 | 118 |
| ROCE % | 18% | 16% | 24% | 34% | 32% | 12% | 21% | 21% | 22% | 24% | 18% | 15% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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Company Information
Sona BLW Precision Forgings is an India-based automotive technology company. The company is engaged in designing, manufacturing and supplying engineered automotive systems and components such as differential assemblies, gears, conventional and micro-hybrid motors, BSG systems and EV Traction motors across all vehicle categories. The company develops mechanical and electrical hardware systems, components as well as base and application software solutions.
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