Sona BLW Precision stock spikes over 5% post Q2 earnings; should you buy?
Sona BLW Precision Forgings, an automotive technology company, witnessed a strong spike in its shares on Thursday after the company posted the highest-ever revenue, EBITDA, and net profit for the September quarter. The company on Wednesday posted a 34% YoY and 15.7% QoQ growth in its consolidated net profit at ₹124 crore, while the revenue from operations came in at ₹791 crore, an increase of 20% YoY, and it reported an EBITDA of ₹223 crore for Q2 FY24, an improvement of 35% YoY and 28.2% QoQ. Following the robust Q2FY24 performance, the stock began Thursday's trade positively, opening at ₹520 apiece, 1.41% higher than the previous closing price of ₹512.75, and zoomed further during the trade to hit an intraday high of ₹539.95 apiece, up by 5.30%.
At 12:15 p.m., the stock was trading with a gain of 4.80% at ₹538. During the quarter, the company said, it received an order from an Indian OEM of PVs, CVs, OHVs, and EVs to supply mid-drive traction motors for their upcoming electric three-wheelers. This program has added ₹370 crore to the company's order book.
Sona BLW Precision is a mid-cap stock with a market capitalisation of ₹31,150 crore. The company is engaged in designing, manufacturing, and supplying engineered automotive systems and components, such as differential assemblies, gears, conventional and micro-hybrid motors, BSG systems, and EV traction motors, across all vehicle categories. This year, the company's shares have gained 28%, rising from ₹420 apiece to the current trading price of ₹538.
This performance stands in stark contrast to last year when the shares lost 43.56% of their value. Remarkably, at present levels, the stock is trading 82% higher compared to its listing price of ₹291 apiece. Domestic
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