HDFC Securities initiates coverage on Sona BLW Precision Forgings, highlighting its strategic position in the electric and software-driven mobility sector amid a growing global shift towards electrification.
HDFC Securities has begun coverage on Sona BLW Precision Forgings with an “Add” rating and a target price of ₹845, arguing that the auto components maker is well placed to benefit from the shift towards electric and software-driven mobility. The brokerage said the company has combined product engineering, technology and customer diversification to build a stronger position in fast-growing segments of the industry.
The investment case centres on electrification. According to HDFC Securities, EV-related products make up 64% of Sona BLW’s net order book, even though they accounted for just 26% of FY26 revenue, suggesting room for a sharper earnings mix as adoption rises in India and overseas markets. The brokerage pointed to the company’s presence in traction motors, differential gears and differential assemblies used in EV platforms as a key advantage.
Sona BLW, also known as Sona Comstar, describes itself as a global mobility systems supplier with products spanning electrified and non-electrified powertrains. Its portfolio includes traction motors, motor control units, e-axles, starter motors and differential systems for passenger vehicles, commercial vehicles, two- and three-wheelers, as well as off-highway applications. The company says it focuses on mission-critical components for global original equipment manufacturers.
HDFC Securities also highlighted the company’s profitability profile, saying its focus on higher-growth mobility categories has helped it sustain EBITDA margins of 23% to 25%. That is broadly consistent with recent broker commentary, which has also pointed to strong execution in EV programmes and a healthy order book as Sona BLW positions itself for a longer transition in automotive technology.
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