Sona BLW Precision shares slip over 5% amid block deal buzz

Shares of Sona BLW Precision Forgings (Sona Comstar) fell over 5% to Rs 505.2 in Wednesday's trade amid reports of a large block deal executed on the counter.
According to reports, promoter Aureus Investment was likely to sell a 3.25% stake in Sona BLW Precision Forgings via a block deal.

As per the shareholding data available with the exchanges, a 33% stake in the firm is held by the promoter and promoter group, while the rest lies with the public.

Top mutual funds, including Mirae Asset, Axis MF, SBI MF, Sundaram MF, Canara Robeco MF, Aditya Birla Sun Life Trustee, and HDFC MF own about 27.03% of the company, while foreign investors have about 24.17% stake.

At 11.13 am, the stock was trading 4.7% lower at Rs 508 on BSE. On a year-to-date basis, the stock has surged over 20%, while it has declined 9% in the last year.
In Q4FY23, the company reported a revenue of Rs 744 crore with 35% YoY growth, while the revenue share from Battery Electric Vehicles (BEV) stood at 28%, a growth of 37% YoY. EBITDA stood at Rs 201 crore with a margin of 27.1% and 49% YoY growth.

Meanwhile, PAT stood at Rs 120 crore with a net profit margin of 16.1% and 54% YoY growth. The EV programs contributed 77% to the net order book of Rs 21,500 crore as of March 31, 2023.

As per Trendlyne data, the average target price of the stock is Rs 548, an upside of 8% from the current market prices. The consensus recommendation from 16 analysts for the stock is a Hold. Out of the 17 analysts covering the stock, ten have strong buy and buy ratings, while four have strong sell and sell ratings. The remaining two have hold ratings.

Technically, the stock's day RSI (14) is at 61. The RSI below 30 is considered oversold and above 70 is overbought, Trendlyne data showed. MACD is at 19.3, which is above its Center Line, but below the signal line.

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