Sona Comstar share price jumps 6% on becoming first automotive component maker to get PLI certificate
Sona Comstar ( Sona BLW Precision Forgings) shares jumped nearly 6% to Rs 648 in Friday intraday trade on BSE after the auto component maker received certification under the auto Production Linked Incentive (PLI) scheme.
The company had filed seven applications for different products under the PLI scheme, and it has received the certification for its first product, a hub wheel drive motor for electric two-wheelers, Sona Comstar said in a regulatory filing.
The company is the first automotive component company to receive the certification, it added.
«This recognition reaffirms the company's commitment to making India proud of its engineering skills and solving complex and customised engineering problems for its customers,» Sona Comstar MD & Group CEO Vivek Vikram Singh said.
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At 12:35 pm, the scrip was trading 4.8% higher on BSE. Meanwhile, the stock has surged 23% in the last one year, while it has gained 11% in the last three months.
In 2021, the government introduced the auto PLI scheme to incentivise the domestic production of high-value advanced automotive technology vehicles and products.
The PLI scheme for the auto and auto component sector has a budgetary outlay of Rs 25,900 crore over five years, starting from FY24.
As per Trendlyne data, the average target price of the stock is Rs 657, which shows an upside of 2% from the current market prices. The consensus recommendation from 16 analysts for the stock is a
