 "Sona BLW")
Sona BLW Precision Forgings shares soared as much as 4 per cent and registered an intraday high of Rs 751 on BSE. The counter saw buying on the back of the company receiving certification for Hub Wheel Motor, a component for electric two-wheelers, apart from launching a qualified institutional placement (QIP).
As of 10:22 AM, shares of Sona BLW Precision Forgings rose 3.17 per cent, or Rs 73.6, to Rs 2,398 per share. The market capitalisation of the company at around the same time stood at Rs 46,093. crore.
PLI certification
Sona BLW Precision Forgings had informed about the PLI approval for Hub Wheel Motor on Wednesday, after market hours, in an exchange filing.
"We wish to inform that the company has received certification for another Product i.e. Hub Wheel Motor for electric two wheelers under the Production-Linked Incentive Scheme for Automobile and Auto Component Industry in India (PLI-Auto) from the Ministry of Heavy Industries," the company said.
QIP launch
The company's board also approved raising Rs 2,400 crore through QIP after market hours on September 4. The floor price for QIP was set at Rs 699.01 per share.
"We further wish to inform you that the Fund Raising Committee (FRC) has fixed the 'Relevant Date' for the purpose of the Issue as September 4, 2024, and accordingly the floor price ... is Rs 699.01 per equity share," the company's exchange filing stated.
Sona BLW Precision Forgings Q1FY25
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In terms of financials, the auto ancillary company reported a 26.7 per cent year-on-year (Y-o-Y) increase in net profit at Rs 141.9 crore for the first quarter ending June 30, 2024, compared to Rs 112 crore a year ago.
Sona BLW's revenue from operations rose 21.8 per cent to Rs 891.2 crore in Q1FY25, from Rs 731.4 crore in the same period last fiscal.
However, Kotak Institutional Equities has given a 'Reduce' rating for Sona BLW Precision Forgings after its Q1FY25 results. The brokerage sees near-term revenue growth trajectory to remain below street expectations as battery electric vehicle (BEV) volumes continue to see moderation in various developed markets.
The brokerage has taken a cautious stance with a fair value of Rs 675 per share.
Sona BLW Precision Forgings share price history
In the past one year, shares of Sona BLW Precision Forgings have gained 24.8 per cent, compared to the BSE Sensex's rise of 25.4 per cent during the same period.
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