Jefferies initiates coverage on India's Sona BLW with 'buy'

Sona Blw Precision Forgings

15/03/2023 09:53

** Jefferies initiates coverage on Sona BLW Precision
Forgings Ltd  SONB.NS  with "buy" rating and price target of 575
rupees, an upside of 33.3% from its last close price
    ** Forged gears, differential assemblies maker's large order
book provides growth visibility, expecting ~45% of revenue from
battery electric vehicles by FY26E - brokerage
    ** Sona's revenue potential over a 10-yr period has risen
50% in last six qtrs, reflecting strong capability to secure new
contracts - Jefferies
    ** Brokerage expects co's revenue and EBITDA to clock a 31%
and 35% compound annual growth rate respectively, over FY23-26E
    ** Blackstone affiliated funds sold balance 20.5% stake in
co on March 13, long-term investors bought the stake 
    ** More than ~4.7 mln shares change hands by 3:10 p.m. IST,
2.8x 30-day avg of ~1.7 mln shares
    ** Ten of the 15 analysts covering the stock have a "buy" or
"strong buy" rating, two have "hold", while three rate it at
"sell"; median PT is 548 rupees - Refinitiv data
    ** Stock last down 1.5% to 425 rupees; down ~33% in last one
year

 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))