Latest news with #SonaBLW
Business Upturn
2 days ago
- Automotive
- Business Upturn
Sona BLW shares fall nearly 2% after Bernstein downgrades stock
By Aditya Bhagchandani Published on June 10, 2025, 09:24 IST Shares of Sona BLW Precision Forgings Ltd fell as much as 1.9% on Tuesday, trading at ₹514.35 as of 9:21 AM IST, down ₹7.00 from the previous close of ₹521.35. The decline follows a downgrade from brokerage firm Bernstein, which revised its rating on the stock to 'Market Perform' from 'Outperform'. The downgrade comes amid growing near-term risks that Bernstein highlighted, including tensions between U.S. President Donald Trump and tech billionaire Elon Musk, as well as ongoing trade issues between the U.S. and India. The brokerage also expressed concerns about the increasing competitiveness of Chinese OEMs in the global electric vehicle (EV) supply chain. Bernstein noted that Sona BLW has significant exposure to the U.S. market and a large portion of its order book is concentrated in EV components, making it vulnerable to geopolitical disruptions and sectoral headwinds. The stock's recent pressure comes despite its strong year-range performance between ₹380 and ₹768.65, with a market cap of ₹318.23 billion and a P/E ratio of 51.67. Sona BLW remains a key player in the EV component space, but analysts now suggest a cautious outlook amid global macro uncertainties. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Time of India
12-05-2025
- Automotive
- Time of India
Things in a flux but see light at the end of tunnel: Bharat Forge on Trump tariffs
HighlightsIndian auto component makers remain cautiously optimistic despite the uncertainty of steep US tariffs, hoping for long-term gains. Bharat Forge and Sona BLW foresee export opportunities amid global supply disruptions but acknowledge near-term challenges. ICRA warns new US tariffs could slash component OEM earnings by up to ₹4,500 crore and lower industry revenue growth projections. New Delhi: The threat of steep tariffs on auto components by the United States has, till now, failed to dampen the spirits of Indian OEMs, though dark clouds of uncertainty continue to hover over the horizon. Many prominent manufacturers have been asserting that India is in a good place but also throwing up their hands at specifics of the tariff fallout. Patience is certainly a virtue but will Trump tariffs help Indian parts' makers take away some business from other countries and simultaneously increase their exports to the USA? Have some clients of these OEMs indicated a change in order quantities or prices? There appear to be no clear answers yet. India is a strong country with very good manufacturing capability and we think that we will see light at the end of this tunnelAmit Kalyani Last week, the top management of Sona BLW Precision Forgings spoke of a silver lining in the long term for Indian parts' makers but also admitted that the short term remains difficult. Now Bharat Forge has echoed a similar sentiment. Read more: Bharat Forge shares in focus as Trump plans to ease auto tariff impact '…things are in a flux and I think the Indian government and Indian manufacturing are cooperating to make sure that we take advantage and are in a good situation even with the United States tariff situation. India is a strong country with very good manufacturing capability and we think that we will see light at the end of this tunnel. Thanks to the leadership and let's say the way the Indian government is handling the situation on tariffs. I think there should be a good solution in place for us sooner than later…,' Vice Chairman and MD Amit Kalyani said after repeated questions from analysts on the fallout of the tariffs on the company's business. Kalyani admitted to 'a lot of uncertainty' though and urged everyone to wait and watch. 'I think India will be in a let's say neutral position to advantageous position vis-à vis many other places and I think this should give a significant opportunity to Indian companies to both manufacture in India and to partner with global companies for mutual beneficial opportunities,' Kalyani said. Global automotive production, and this I include every market, may see disruptions due to supply chain complexities and high dependence on China, especially for rare earth materialsVivek Vikram Singh Meanwhile, Sona had said given out two factors to justify its optimism: a) a been there, done that attitude, which is a result of a large order book and substantial growth after the Covid19 disruption b) hope that in the medium to long term, weaker global auto parts manufacturers may not survive the impending chaos whereas companies with strong balance sheets like Sona will be able to ride the trough of tariffs. But the short term worry remains. Sona provides mission critical systems for electrified and non electrified powertrains to BEVs as well as ICE vehicles, in India and many markets across the world. We are not immune to the demand and supply disruptions. But if you can look beyond the short term, I think there is also a lot of opportunityVivek Vikram Singh Passenger cars first off the block Bharat Forge's Kalyani said that so far, only passenger car parts will be attracting higher tariffs from the US. To a question on how customers of the company have reacted and whether they are going slow on orders, Kalyani repeated the 'wait and watch' phrase, while emphasising that the company's US order book remains strong. Sona's MD and Group CEO Vivek Vikram Singh had said earlier that the tariffs will adversely impact the demand for cars as well as light trucks. And since Sona is a supplier to automakers globally, 'we may not be, we in fact are not immune to the demand and supply disruptions. But if you can look beyond the short term, I think there is also a lot of opportunity. Second, global automotive production, and this I include every market, may see disruptions due to supply chain complexities and high dependence on China, especially for rare earth materials.' Read more: Bharat Forge, Tata Motors, other auto stocks tumble up to 9%, extending tariff led rout In a recent comment on the impact of Trump tariffs on Indian auto component makers, ICRA had estimated anywhere between ₹2,700 crore to ₹4,500 crore on the component OEMs' earnings after the imposition of steep US tariffs on key automotive parts. The new levies include 25per cent tariff on engines, transmission, electrical components and other auto parts. These tariffs may also moderate the overall auto component industry's revenue growth to 6-8per cent in the current fiscal, which is a downward revision from an earlier projection of 8-10per cent . Speaking about the impact of tariffs, a senior component industry executive had said earlier that problems could arise if China were to undercut Indian auto parts' exports through any kind of opaque subsidies. Other problem scenarios could include a demand slump in the US market and if Trump were to offer selective tariff relaxations to other countries. India's component exports were worth 6.79 billion US dollars in FY2024.
Business Upturn
02-05-2025
- Business
- Business Upturn
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. By Markets Desk Published on May 2, 2025, 08:25 IST Last updated May 2, 2025, 08:15 IST 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
India Today
29-04-2025
- Automotive
- India Today
Explained: Why Tata Motors, Samvardhana Motherson and other auto stocks are rising
Tata Motors, Samvardhana Motherson International, Sona BLW and several other auto stocks climbed in early trade on Tuesday, after reports suggested that US President Donald Trump is moving to soften the blow of recently announced automotive 9:50 am, Tata Motors shares were up 1.2% at Rs 676.45, while Samvardhana Motherson gained 1.4% to Rs 136.85 on the Bombay Stock Exchange. Although some of the early gains were trimmed by profit booking, the auto sector stood out in an otherwise cautious market. Sona BLW shares were trading 3.2% higher at Rs 478.10. The fresh optimism came after White House officials said the administration was working on measures to ease tariffs on certain foreign parts used in vehicles manufactured domestically. Trump, who had earlier proposed a steep 25% tariff on imported auto parts effective May 3, now appears to be pulling back slightly, especially to protect US carmakers and their is scheduled to visit Michigan, the heart of America's auto industry, where major players like Ford, GM and Stellantis operate alongside hundreds of smaller suppliers. Industry groups had mounted intense lobbying efforts last week, warning the administration that blanket tariffs would choke supply chains, drive up car prices for consumers, hurt dealership sales, and trigger bankruptcies across the supplier a letter to top US officials, a coalition representing automakers like General Motors, Toyota, Volkswagen and Hyundai argued that many suppliers are already under financial strain. 'It only takes the failure of one supplier to shut down an entire production line," they cautioned, painting a grim picture of cascading disruption across the full details of the tariff adjustments are still awaited, the market is already factoring in the possibility of a softer stance, especially for key component suppliers. That sentiment helped lift auto-related stocks today, even as broader market sentiment stayed will be watching closely for official announcements later today — and for any broader signals on how the evolving US-China trade tensions could reshape the global auto supply chain in the months Watch advertisement
