Nuvama Recommends Sona BLW Stocks: Investing in stock market is always associated with risk, hence it is said that No risk, no gainKeeping these risks and possibilities in mind, brokerage firm Nuvama Institutional Equities has advised to place strong bets on Sona BLW Precision Forgings, a company manufacturing electric vehicle parts and precision forgings,
Nuvama has increased the target for the next 12 months for the company to Rs 570, which is about 16 percent more than the current level. The brokerage house estimates that due to the increasing popularity of electric vehicles and technological advancement, the company’s business will see significant expansion in the coming years.
Betting advice on Sona BLW
According to Nuvama, Sona BLW’s revenue may increase from Rs 3,546 crore in FY25 to Rs 6,124 crore in FY28. Along with this, the EBITDA of the company is also expected to increase from Rs 966.8 crore to Rs 1,559.8 crore, which points towards its strong financial position and growing product portfolio.
However, the brokerage has also warned that if there is any slowdown or slowdown in the electric vehicle segment globally, it may have a direct impact on the company’s performance. Demand for EVs may also remain unstable in international markets, hence auto component manufacturing companies will have to be cautious and formulate strategies.
What does the company do?
Talking about the company’s business, Sona BLW currently has an order backlog of about Rs 23,600 crore, out of which about 70 percent is related to electric vehicle programs. Apart from this, the company’s railway unit has registered a profit of 20 percent in the second quarter of FY25 and has also received new orders worth Rs 1,300 crore, most of which is expected to be completed within a year.
Nuvama believes that the revenue of the Railway Business Division may increase to around Rs 1,500 crore by FY28, which will further strengthen the overall business growth of the company. Overall, given the company’s strong order book, pace of new projects and its growing contribution to the electric vehicle sector, Sona BLW Precision Forgings is emerging as an attractive option for investors.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
