India's Sona BLW Precision Forgings up 7% on Novelic acquisition

Sona Blw Precision Forgings

10/01/2023 04:44

** Shares of Sona BLW Precision Forgings Ltd  SONB.NS  up as
much as 7.36% to 454.50 rupees, their biggest intra day pct gain
in nearly ten months since March 17, 2022
    ** The automotive solutions provider on Monday agreed to
acquire 54% stake in Serbia-based radar sensors technology
solutions provider Novelic for 40.5 mln euros
    ** The acquisition will add a third business vertical of
sensor and software for Sona - Motilal Oswal 
    ** "While it will not contribute meaningfully to SONACOMS
financials in the near term, it could account for 10%-15%
revenue by FY29 if it achieves management’s expectation of $100
mln revenues in 6-7 years" - Motilal Oswal 
    ** "With this acquisition, Co has taken an early step to
provide sensor and software solutions to electrified autonomous
vehicles" - Kotak Institutional Equities
    ** More than 3.16 mln shares change hands by 10:10 a.m. IST,
3.6x the 30-day moving avg of 8,78,065 shares
    ** Of the 14 analysts tracking the company, nine suggest
"buy", three maintain "hold" and two recommend "sell"; median PT
at 560 rupees- Refinitiv data
    ** Stock rose ~44% last year
 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.tandon@thomsonreuters.com))