Sona BLW Q4 Results: Citi raises target price for stock as PLI boosted earnings but cuts growth estimates
Citi has reiterated its 'Buy' rating on Sona BLW, while raising the target price to ₹590 from ₹570, after the company's Q4FY25 earnings exceeded estimates, helped by PLI-linked incentives and higher-than-expected other income.
Sona BLW reported a YoY net profit of ₹164 crore, up 1.3%, and revenue of ₹868 crore, down 2%. EBITDA fell 5% to ₹235 crore, with margins at 27.1%, compared to 28% in Q4FY24. Notably, other income surged to ₹52 crore from ₹7 crore, aiding the bottom line.
Citi noted that the outlook remains positive despite global risks, including the recently announced US tariff hikes. The brokerage estimates that only 3% of total revenue is exposed to the US tariffs, which it views as manageable.
However, Citi flagged volatility in near-term demand and potential disruptions in the supply chain for rare-earth metals used in EV powertrains. It has trimmed FY26–27 estimates slightly to account for these uncertainties, but continues to see strong fundamentals driving long-term growth.
Disclaimer: The above views are those of the brokerage and not the publication. Investors are advised to consult a certified financial advisor before making investment decisions.
Markets Desk at BusinessUpturn.com
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