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Sona Comstar Q1 Review - Resilient, Unstoppable: IDBI Capital

Sona Comstar Q1 Review - Resilient, Unstoppable: IDBI Capital

<div class="paragraphs"><p>Forged gear manufactured by Sona Comstar. (Source: Company website)</p></div>
Forged gear manufactured by Sona Comstar. (Source: Company website)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Sona BLW Precision Forgings Ltd. (Sona Comstar) reported impressive financial performance in Q1 FY22.

Its adjusted profit grew by 3.1% QoQ.

Despite of intense cost pressure, it reported 173 basis points expansion in Ebitda margins to 27.7% which is commendable.

Increased contribution from battery operated electric vehicle segment from 13% in Q4 FY21 to 20% in Q1 FY22 and global market share gains in differential gears and starter motor were the bright spots.

Sona Comstar has as order book of Rs 140 billion which provides strong sales visibility over the next five to seven years.

We have retained our sales and profit after tax estimates for FY22 and FY23 keeping in mind robust financial performance and strong growth outlook.

Click on the attachment to read the full report:

IDBI Capital SonaBLW Forgings Q1FY22 Result Update.pdf

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