Sona Comstar Shares Hit A Record High For Second Straight Day
Shares of Sona BLW Precision Forgings Ltd. hit a fresh all-time high for the second straight day, as investors continued to derive optimism from its first-quarter results and Nomura’s ‘buy’ recommendation for the auto parts supplier.
The company saw its profit jump 38% sequentially to Rs 82.2 crore in the quarter ended June. Its revenue, however, was down 7% at Rs 500.7 crore. Sona’s Ebitda margin expanded to 27.7% from 26% in the preceding three months.
Separately, Nomura said Sona Comstar has one of the highest growth rates and return on equities among global peers that supply to electric vehicles, and large potential opportunity with rising electrification in both India and across the world.
The brokerage estimates Sona’s EV revenue to increase from around 14% in FY21 to 40% by FY24. Overall, it expects Sona’s revenue and profit to grow at an annualised rate of 38% and 45% over FY21-24.
That had helped the stock to touch a record high on Monday.
IDBI Capital, too, said Sona is likely to be the fastest-growing India-based auto ancillary company. The research house, however, downgraded the auto stock from ‘buy’ to ‘hold’.
Shares of Sona Comstar rose as much as 8.6% to Rs 519.10 apiece on Tuesday, after closing 16.1% up a day before. The stock has been gaining for the third straight session.