A very good company with a lot of innovation technology, and with a market cap of 20k Crores..
Fell 50% almost from its peaks.
Started looking attractive for the first time at 480 levels. Buy first tranche at this price.. and the rest if it goes to 368
Targets are high
Buy for targets of 485,495,513,522 plus in 270 days
1. Attractive Valuations
2. PAT Increasing
3. Operating Profit increasing
4. RoE, RoCE increasing
5. EPS and book valye increasing
6. Almost debt free company
Targets can be met on or before the given time.
Edelweiss target on SONACOMS
Price @ Call: 657
#SONACOMS 650 : Targets 685 & more in
#SONACOMS : today's high 812.5 our 3rd target of 800 hit successfully now call is closed from our - gain 17% in 3rd target average gain 13 %
#SONACOMS made High 749 today 1st target hit
Amazing no’s from Sona BLW..!!!
🅱️Rev of ₹5862M vs 5009M qoq
🅱️ PBT ₹1162 vs 1101 and Pat of ₹882 vs 822
🅱️ eps 1.52/sh vs ₹1.43/sh (FY 21 ₹3.74)
Most important part in balance sheet.
🏯 long term borrowing decreased to only ₹52.76M vs ₹1907M on March 21
🏯 current borrowing ₹949M from 1735 M on mar 21
Cash 💰 also improved to 643M from march 272.45
Nirmal Bang target on SONACOMS
Broker: Nirmal Bang
Price @ Call: 575
Rising commercial vehicle demand to be additional growth lever: Sona BLW Precision
Demand for commercial vehicles has started picking up in the local market and will emerge as an additional lever of growth, along with international markets and the battery electric vehicle segment mid-term, said auto component firm Sona BLW Precision Forgings.
The company, however, said that while green shoots are visible in the CV segment, it expects sales in the category to regain peak volumes seen in 2018 only by 2024. In 2020, 505,189 commercial vehicles were sold in the domestic market, just over half of the 1,005,380 units sold in 2018.
Contribution from electric vehicles to the company’s overall revenues will increase every year, said managing director Vivek Vikram Singh.
The share of battery electric vehicles (BEV) in the first quarter of this financial year grew to 19.9% from 13.8% in 2020-21
Sona BLW Precision Forgings, which has been supplying components for electric vehicles to automakers in North America, Europe and China, said the global EV market is estimated to grow at a compound annual growth rate of 36% for the next four-five years. With 57% of its new order book of $ 1.9 billion over the next 10 years coming in from the BEV or PHEV (plug-in hybrid) segment, the company said its revenue dependence on components for internal combustion engine vehicles will steadily reduce.
Overall, the company is looking at investing about Rs 950 crore in the three years till 2023-24 to service its order book.
Singh said while the company is executing programmes in the EV segment for customers in India, the market is evolving and yet to gain sizeable scale, both in volume and value terms. “The potential is huge, policies are in favour (of EVs). Once the cost of batteries comes down, the market will tip,” he said.
The company, which supplies gears, differential assemblies and final assemblies to carmakers making EVs of 100 kilowatts and above, is working on expanding the driveline product range to cover the small and mid-segment BEV market. In the motor business, the company has developed higher voltage systems like the 48 watt BSE or the 30 kilowatt plug-in hybrid motor and controller, which are both currently in testing phase with different customers in India and China
Separately, to reduce dependence on China for raw materials in the changed geopolitical environment, the company is working with Israel’s IRP Nexus and India’s iCreate to develop a new powertrain, which will not use magnets. Sona Comstar will have the exclusive rights to manufacture the systems in India for sale in the global two- and three-wheeler market.
China controls 95% of the global supply of magnets. “A big portion of the cost of the motor is rare earth magnets. If we can make a motor without magnets, not only can we ensure security of our supplies, there will also be a huge cost advantage,” said Singh.
If successful, a cheaper light-weight motor can accelerate e-mobility, particularly in the two-wheeler segment, he said.
To diversify risks geographically, the company has additionally been making efforts to expand business in Europe and China. Most of its new EV orders in the past nine months have come from Europe. International business accounted for 79% of revenues in the quarter to June, led by North America, Europe and China.
India will global manufacturing hub for EV in next 5 years. Below are few companies to focus:
*Sona BLW Precision* is one of India’s leading automotive technology companies designing, Manufacturing and supplying automotive systems and components such as differential assemblies, gears, conventional and micro hybrid motors, BSG systems and EV Traction motors across all vehicle categories.
Mr. Vivek Vikram Singh - MD & Group CEO, Sona BLW Precision Forging - Says today
- 15-yrs rule for technology disruption: Once the tipping point is reached, it takes a new technology company 15yrs to go from single-digit market share to absolute market share, as old technology goes obsolete.
- This trend has repeated again and again over the past 200 years.
- The world has seen two main revolutions in mobility: Horse carts - internal combustion car engines in the 1900s - connected autonomous shared and electric cars in the 2000s'.
- Our Vision: To become India's most valuable auto technology company and enable the future of mobility in the country.
- Phases of growth: Phase 1 - 15% CAGR in the first 12 years; Phase 2 - CAGR moderated to 10%, but raised EBITDA margin from 21% to 25% during this phase; Phase 3 - This was a transformational phase for us
- We massively expanded international business organically. We doubled our customer base from 22 to 37 customers. We also acquired Comstar during this phase.
- Achieved 32% CAGR in last 5 yrs & raised our EBITDA margin to 28%. Phase 4 -It is the beginning of our new growth phase as a public company. In any of the growth phases, we have exceeded industry growth rates by many times.
- We are among a handful of companies globally and perhaps the only company in India to achieve 1) a large EV revenue share, 2) good scale and high growth, and 3) remarkable financial performance.
- 1 of every 8 BEV differential assemblies sold comes from our Manesar plant.
- We have four strategic priorities: 1) Electrification, 2) Global market significance, 3) Diversification, and 4) Technology.
- Our secret sauce: We design our products using first principles to our customers' end specifications using our proprietary design software, in-house tone and dye development, and our own precision forging technology.
- As we venture into the future, some of our products will be hits and some will be failures. That is the very essence of innovation.
- We accept this reality & developed a culture that allows our team to be unafraid to try new things. This is what has led to our success. We will continue with this mindset, & we hope to see more successes than failures.
- The integration of SONA and COMSTAR was not a numbers-driven move but a deliberate act to gain the technical capability to create what we believe is the heart of the EV: the motor, the drive, and the controller.
- The Auto market is very large and not a winner-takes-all kind of market. Our niche lies in the fact that we have a handful of products, unlike larger players that have hundreds of products.
- So we can optimize performance and costs as we are specialists. We are, so to speak, the cardiac surgeons to a multi-speciality hospital.
Sona BLW Precision Forgings, Israel's IRP Systems to Co-Develop Magnet-Less Powertrains for Electric Vehicles
Indian auto parts manufacturer Sona BLW Precision Forgings (SONACOMS, BOM:543300) has partnered with Israel's electric powertrain systems provider IRP Systems to develop a new magnet-less powertrain for two- and three-wheeler electric vehicles across the globe.
As part of the collaboration, IRP will license its technology to Sona BLW, which will manufacture the system exclusively in India.
The companies aim to create a motor-plus-controller combination that does not use rare earth elements, offering low cost and efficiency to manufacturers of electric vehicles globally.
The mass production of the new powertrain is expected to start in 2023, according to a Thursday release.
The partnership was facilitated by India's technology business incubator International Center for Entrepreneurship and Technology.
STOCK TO KEEP AN EYE ON!!
Sona BLW Precision Forgings Ltd
-Company has delivered good profit growth of 130.31% CAGR over last 5 years
-Stock has been generating better return on equity than bank FD
-Good time to consider, as stock is not in overbought zone
-Stock not in ASM/GSM lists and not a lot of promoter holding is pledged
-New 52 Week High
-Company with Low Debt
-Company with Zero Promoter Pledge
-Stock gained more than 20% in one month
-Company consistently making profits?
-Are earnings improving over years?
-Does company consistently making money for its Shareholder?
-Company with low Debt?
-Is company able to meet its working capital requirments?
-Does company generates cash from operations?
-Does Promoter holds adequate holding in company?
-Company with Low Promoter Pledge?
-Does Stock have good Price Momentum?
About The Company
-Business: Sale of motor vehicle parts and accessories
Chairman: Sunjay Kapur
Managing Director: Vivek Singh
Listing: NSE: SONACOMS, BSE: 543300
Market Cap: R 29,733.20 Cr
Revenue (TTM): R 1,566.30 Cr
Earnings (TTM): R 215.17 Cr
Cash: R 27.58 Cr
Total Debt: R 364.65 Cr
Promoters' Ownership: 67.30%
52 Week Range: R 295.00 - 521.75
Face Value: R10.00
Shares Outstanding: 58,32,89,838