Check Before You Invest : Sona BLW Precision Forgings Ltd

Snapshot

Q.1 Which industry/sub-sector does Sona BLW Precision Forgings Ltd belong to?

Sona BLW Precision Forgings Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q.2 Is Sona BLW Precision Forgings Ltd a good quality company?

Sona BLW Precision Forgings Ltd is a good quality company, based on a consistently good 8-year financial track record.

Q.3 Is Sona BLW Precision Forgings Ltd undervalued or overvalued?

Sona BLW Precision Forgings Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Sona BLW Precision Forgings Ltd a good buy now?

Sona BLW Precision Forgings Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sona BLW Precision Forgings Ltd?

Sona BLW Precision Forgings Ltd revenue growth is 11.6% for FY-2025, which is below its 5-year CAGR of 27.91%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Sona BLW Precision Forgings Ltd?

Sona BLW Precision Forgings Ltd Return on capital employed is 19.75% for FY-2025, which is below its 5-year historical median of 22.98%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Sona BLW Precision Forgings Ltd?

Sona BLW Precision Forgings Ltd Return on Asset is 11.18%, which is below its 5-year historical median of 13.56%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sona BLW Precision Forgings Ltd?

Sona BLW Precision Forgings Ltd Return on equity is 14.83% for FY-2025, which is below its 5-year historical median of 18.47%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Sona BLW Precision Forgings Ltd?

Sona BLW Precision Forgings Ltd Cash conversion cycle is 63 days, below its 5-year historical median of 77 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.66	0.88
ROE	14.83	18.47
ROCE	19.75	22.98
Cash Conversion Cycle	63 days	77 days

Q.6 Gross Profit margin of Sona BLW Precision Forgings Ltd?

Sona BLW Precision Forgings Ltd Gross profit margin which is the profit after deduction of direct costs, is 30.2% for FY-2025, which is above its 5-year median of 26.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Sona BLW Precision Forgings Ltd?

Sona BLW Precision Forgings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.44% for FY-2025, which is in line with its 5-year median of 27.44% indicating stable margins.

Q.8 Net Profit Margin of Sona BLW Precision Forgings Ltd?

Sona BLW Precision Forgings Ltd Net Profit Margin is 16.87% for FY-2025, is in line with with its 5-year median of 16.26%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	30.2	26.3
Operating Profit Margin	27.44	27.44
Net Profit Margin	16.87	16.26

Q.9 Debt to Equity ratio of Sona BLW Precision Forgings Ltd?

Sona BLW Precision Forgings Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.46, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sona BLW Precision Forgings Ltd?

Sona BLW Precision Forgings Ltd Debt to cash flow from operations is 0.02, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sona BLW Precision Forgings Ltd?

Promoters hold 28.02% of the Sona BLW Precision Forgings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sona BLW Precision Forgings Ltd vs industry peers?

Sona BLW Precision Forgings Ltd revenue CAGR is 27.91%, compared to the industry median CAGR of 12.41%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	11.6	12.4
Gross Profit Growth	19.1	16.2
Operating Profit Growth	8.1	14.7
Net Profit Growth	15.8	20

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.66	1.23
ROE	14.83	12.01
ROCE	19.75	13.5
Cash Conversion Cycle (days)	63.19	47

Valuation & price assessment

Q.1 Stock return of Sona BLW Precision Forgings Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 7.44% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	7.4%	22.1%

Q.3 Valuation ratios of Sona BLW Precision Forgings Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	58.91	74.98	28.80
Price to Book	6.3	8.76	2.99
Price to Sales	8.48	11.26	1.35
EV to EBITDA	31.24	39.88	11.86

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