Sona BLW Precision Forgings Ltd. share price target

Strong order Book Market share Gains: SONACOMS net order book stands at Rs136bn (~9x FY21 sales) which includes EV segment of Rs79bn (59%) and Non-EV segment Rs57bn (41%). Net order book implies aggregate sales in the next 10 years from awarded programs which are either yet to start production or are yet to fully ramp up). Its Global market share in Differential Gears and Starter Motor grew from 5% to 6.4% and 3% in to 5% respectively during CY9MCY21. HOLD: SONACOMS has a reputed client credentials with highly profitable self-funded business model which warrants premium valuations. Its Sales and PAT are expected...

Expansion in EBITDA Margins Commendable Retain Estimates: During Q1FY22, SONACOMS reported Sales of Rs5bn, 227% increase YoY. Despite lower domestic sales (declined by 24% QoQ) due to lockdown, the Company reported modest decline of 7.2% on QoQ basis. In challenging operating environment due to rise in commodity prices, it reported EBITDA margins 27.7%, 173bps up QoQ is commendable. Based on impressive financial performance and strong growth outlook we retain our sales and PAT estimates for FY22E and FY23E. Strong order Book Market share Gains: SONACOMS net order book stands at Rs140bn (9.1x FY21 sales) which includes EV segment of Rs80bn (57.1%) and Non-EV segment...

Sona BLW Precision Forgings Ltd. (SONACOMS), a new generation India based Auto ancillary has two established businesses in the form of Bevel Gears and Motors which are integral part of EV's and Hybrid vehicles. The Company is likely to be biggest beneficiary of a) Global transition trend from IC (Internal Combustion) vehicles to BEV (Battery Electric Vehicle) Market to expand by 5x in 5 years b) Substantial increase in Content per vehicles for SONACOMS existing product portfolio for EV compared to IC vehicles c) Ramp up in cumulatively awarded 58 programs across its product line (64% of programs to commence production over the next 18 months) and d) New launches in Electrical Motor segment. The Company has unmatchable business attributes like EV focused product...

Sona BLW Precision Forgings Limited IPO Note Issue Open: June 14 June 16, 2021 Price Band: Rs. 285 291 *Issue Size: 190,721,649 eq shares (Fresh issue of 10,309,278 eq sh (Rs 300 cr) +offer for Sale of 180,412,371 eq sh (Rs.5250 cr)) Issue Size: Rs. 5435.6 5550.0 cr Reservation for: QIB atleast 75% eq sh Non Institutional Upto 15% eq sh Retail Upto 10% eq sh

SONA BLW PRECISION FORGINGS LIMITED is one of India's leading automotive technology companies, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components. Its components include differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors (BLDC and PMSM) and motor control units. It supplies its automotive OEMs across

We recommend SUBSCRIBE' for long term on Sona Comstar Ltd.'s IPO given i) huge addressable market considering strong growth potential of EV/hybrid products (~41% of revenue), ii) diversification across geographies (~75% revenue from exports) and iii) market share gains in key products. The company is one amongst limited number of players who is well placed to integrate 3 constituents of electric powertrain (differential assembly, high voltage traction and high voltage inverters) into a single matched unit offering...

We recommend SUBSCRIBE' for long term on Sona Comstar Ltd.'s IPO given i) huge addressable market considering strong growth potential of EV/hybrid products (~41% of revenue), ii) diversification across geographies (~75% revenue from exports) and iii) market share gains in key products. The company is one amongst limited number of players who is well placed to integrate 3 constituents of electric powertrain (differential assembly, high voltage traction and high voltage inverters) into a single matched unit offering...

51 Equity Shares and in multiples thereof. Public issue of 190,721,649 Equity shares of Face value Rs. 10 each, (Comprising of fresh issue of 10,309,278 Equity Shares* (Rs. 300 cr.) and Offer for Sale of...

IPO NOTE