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Sona BLW Precision Forgings Limited

SONACOMSAuto Components

Fundamental Score

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Sona BLW Precision Forgings Limited Share Price & Market Analysis

Current Market Price (CMP)
421.35
No change data available
Market Cap
26.20K (Cr)
Industry
Auto Components

Profitability Metrics

Poor

Return on Equity

14.37%
Good

Return on Capital Employed

17.82%
Excellent

Operating Profit Margin (5Y)

27.22%
Average

Dividend Yield

0.76%

Valuation Metrics

Poor

Price to Earnings

43.29x

Market Capitalization

26.20K (Cr)

Industry P/E

29.57x

Growth Metrics

Poor

YoY Quarterly Profit Growth

-7.38%
Poor

YoY Quarterly Sales Growth

-4.18%
Excellent

Sales Growth (5Y)

27.85%
Poor

EPS Growth (5Y)

-21.51%
Excellent

Profit Growth (5Y)

31.47%

Financial Health

Excellent

Debt to Equity

0.04x
Excellent

Interest Coverage

30.87x
Excellent

Free Cash Flow (5Y)

956.98 (Cr)

Ownership Structure

Poor

Promoter Holding

28.02%
Excellent

FII Holding

29.75%
Excellent

DII Holding

34.60%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Large-cap
Established & liquid; typically steadier returns.
28.02%
Promoter Holding
26.20K (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of SONACOMS across key market metrics for learning purposes.

Positive Indicators

9 factors identified

Excellent ROCE Performance (17.82%)

Observation: Superior returns on capital employed across business operations.

Analysis: ROCE >15% demonstrates efficient capital deployment and strong operational performance. This indicates quality business fundamentals.

Strong Operating Margins (27.22%)

Observation: Healthy 5-year operating margins indicate pricing power and cost control.

Analysis: OPM >15% suggests operational efficiency and competitive advantages. This indicates sustainable profitability potential.

Consistent Growth Track Record (27.85% CAGR)

Observation: Strong 5-year sales compound annual growth rate.

Analysis: Consistent sales CAGR >12% demonstrates sustainable growth model and market opportunity execution over time.

Strong Profit Growth Track Record (31.47% CAGR)

Observation: Consistent 5-year profit compound annual growth rate.

Analysis: Profit CAGR >15% demonstrates scalable business model and effective operational leverage over time.

Conservative Debt Levels (D/E: 0.04)

Observation: Low leverage provides financial flexibility and reduced risk.

Analysis: Conservative debt structure offers resilience during economic downturns and flexibility for growth investments.

Strong Interest Coverage (30.87x)

Observation: Earnings comfortably cover interest obligations.

Analysis: Interest coverage >5x indicates low financial distress risk and strong debt servicing capability.

Strong Cash Generation (₹956.98 Cr over 5Y)

Observation: Healthy free cash flow generation supports growth and returns.

Analysis: Strong FCF provides flexibility for dividends, debt reduction, and growth investments.

Strong Institutional Confidence (FII+DII: 64.35%)

Observation: Significant professional investor participation indicates quality recognition.

Analysis: High institutional holding often signals thorough due diligence and quality business fundamentals.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Risk Factors

4 factors identified

Premium Valuation Risk (P/E: 43.29x)

Observation: High valuation multiples may limit upside potential.

Analysis: Elevated P/E ratios require strong growth execution to justify current valuations. Consider entry timing carefully.

Weak Earnings Growth (-21.51% CAGR)

Observation: Below-average 5-year EPS growth performance.

Analysis: Low EPS growth may not keep pace with inflation. Consider growth catalysts and competitive positioning.

Low Promoter Commitment (28.02%)

Observation: Reduced promoter stake may indicate limited confidence.

Analysis: Low promoter holding may raise questions about management commitment and long-term vision alignment.

High P/E Ratio

Observation: Stock may be overvalued relative to earnings.

Analysis: P/E above 30 requires strong growth execution to justify current valuations.

📊 Educational Market Overview

Disclaimer: The ratings and scores are generated algorithmically from publicly available market data and are provided for educational and informational purposes only. They do not constitute investment advice, recommendation, or solicitation to buy/sell any securities.

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Financial Statements

Comprehensive financial data for Sona BLW Precision Forgings Limited

About SONACOMS

Company Details

Symbol:SONACOMS
Industry:Auto Components
Sector:Auto Components & Equipments

Market Information

Market Cap:26.20K (Cr)
P/E Ratio:43.29
Beta:N/A

Performance

52W High:N/A
52W Low:N/A
Dividend Yield:0.76%

SONACOMS Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)14.37%
Return on Capital Employed17.82%
Operating Profit Margin (5Y)27.22%
Debt to Equity Ratio0.04
Interest Coverage Ratio30.87

Growth & Valuation

Sales Growth (5Y)27.85%
Profit Growth (5Y)31.47%
EPS Growth (5Y)-21.51%
YoY Quarterly Profit Growth-7.38%
YoY Quarterly Sales Growth-4.18%

Frequently Asked Questions

What is the current price of SONACOMS?

SONACOMS is currently trading at ₹421.35 with a gain of 0.00% today. The current market price (CMP) represents the last traded price of SONACOMS shares on the stock exchange. This price fluctuates throughout trading hours based on supply and demand. You can track real-time price movements, percentage changes, and trading volume in the header section.

What is the P/E ratio of SONACOMS and what does it mean?

SONACOMS has a P/E ratio of 43.29x compared to the industry average of 29.57x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹43 for every ₹1 of annual earnings. This is higher than the industry average, suggesting either growth premium or potential overvaluation.

How is SONACOMS performing according to Bull Run's analysis?

SONACOMS has a Bull Run fundamental score of 42.6/100, which indicates concerns that require careful analysis. This comprehensive rating is based on 15+ financial parameters including profitability (ROE: 14.37%), growth metrics, valuation ratios, and financial health indicators. The score updates quarterly with new financial data and helps you quickly assess overall investment quality.

What sector and industry does SONACOMS belong to?

SONACOMS operates in the Auto Components industry. This sector classification helps understand the broader economic trends, regulatory framework, and competitive landscape affecting Sona BLW Precision Forgings Limited. Companies in this industry typically face similar market dynamics, cyclical patterns, and macroeconomic factors. Understanding the industry context is crucial for peer comparison and assessing how sector-specific trends might impact the stock's performance.

What is Return on Equity (ROE) and why is it important for SONACOMS?

SONACOMS has an ROE of 14.37%, which shows decent profitability but room for improvement. Return on Equity measures how efficiently Sona BLW Precision Forgings Limited generates profits from shareholders' equity. An ROE of 14% means the company generates ₹14 profit for every ₹100 of shareholders' equity. This metric is crucial for assessing management's ability to create value for shareholders.

How is SONACOMS's debt-to-equity ratio and what does it indicate?

SONACOMS has a debt-to-equity ratio of 0.04, which indicates conservative financing with low financial risk. This means the company has ₹4 of debt for every ₹100 of equity. This conservative approach provides financial stability but may limit growth potential.

What is SONACOMS's dividend yield and is it a good dividend stock?

SONACOMS offers a dividend yield of 0.76%, which means you receive ₹0.76 annual dividend for every ₹100 invested. The focus appears to be more on growth rather than dividend income. Dividend yield is calculated as annual dividend per share ÷ current share price × 100. Evaluate dividend consistency over 5+ years and free cash flow coverage for sustainability.

How has SONACOMS grown over the past 5 years?

SONACOMS has achieved 5-year growth rates of: Sales Growth 27.85%, Profit Growth 31.47%, and EPS Growth -21.51%. This consistent double-digit growth indicates a strong business model and competitive positioning. Sales growth indicates market expansion, profit growth shows operational efficiency, and EPS growth directly impacts share price appreciation potential.

What is the promoter holding in SONACOMS and why does it matter?

Promoters hold 28.02% of SONACOMS shares, with 0.00% of promoter shares pledged. This promoter holding level suggests balanced ownership between management and public shareholders. Low pledging indicates financial stability of promoters. Recent change in promoter holding: 0.00%.

How does SONACOMS compare with its industry peers?

SONACOMS trades at P/E 43.29x vs industry average 29.57x, with ROE of 14.37% and ROCE of 17.82%. The stock trades at a premium to industry average, which may be justified by superior fundamentals. Peer comparison helps identify whether SONACOMS is outperforming its competitive set in profitability, growth, and valuation metrics.

What is SONACOMS's market capitalization and what category does it fall into?

SONACOMS has a market capitalization of ₹26199 crores, making it a Large-cap stock. Large-cap stocks offer stability and liquidity but typically slower growth. Market cap is calculated as current share price × total outstanding shares, representing the company's total market value.

What are the key financial ratios to consider for SONACOMS?

Key ratios for SONACOMS: ROE 14.37% (Good), ROCE 17.82%, P/E 43.29x, Debt-to-Equity 0.04, Interest Coverage 30.87x. These ratios help assess profitability (ROE, ROCE), valuation (P/E), financial health (D/E, Interest Coverage), and overall investment quality. Compare these with industry medians and historical trends for meaningful analysis.

How volatile is SONACOMS stock and what is its beta?

SONACOMS has a beta of N/A, which means it is less volatile than the market and offers defensive characteristics. Beta measures price volatility relative to the Nifty 50. Lower beta stocks provide stability during uncertain market conditions. Consider beta alongside your risk tolerance and portfolio diversification strategy.

What is the 52-week high and low for SONACOMS?

SONACOMS has a 52-week high of ₹N/A and low of ₹N/A. Currently trading at ₹421.35, the stock is within its annual trading range. Trading near highs indicates strong momentum but limited upside potential.

What are the key risks associated with investing in SONACOMS?

Key risks for SONACOMS include: Market volatility (Beta: N/A), financial leverage (Debt-to-Equity: 0.04), and operational challenges. The stock has a Fundamental Score of 42.6/100, indicating higher risk requiring thorough due diligence. Sector-specific risks in Auto Components include regulatory changes, economic cycles, and competitive pressures. Consider your risk tolerance, investment horizon, and portfolio diversification before investing. Past performance doesn't guarantee future results.

What is SONACOMS's operating profit margin and how has it trended?

SONACOMS has a 5-year average Operating Profit Margin (OPM) of 27.22%, which is excellent and indicates strong pricing power and cost control. Operating Profit Margin shows operational efficiency by measuring operating profit as a percentage of revenue. This strong margin indicates competitive advantages and operational leverage. Compare with industry peers to understand relative performance.

How is SONACOMS's quarterly performance in terms of sales and profit growth?

SONACOMS's recent quarterly performance shows YoY Sales Growth of -4.18% and YoY Profit Growth of -7.38%. Growth rates indicate the current business trajectory and market demand. Sales growth shows market demand while profit growth reveals operational efficiency and margin management.

What is the FII and DII holding pattern in SONACOMS?

SONACOMS has FII holding of 29.75% and DII holding of 34.60%, totaling 64.35% institutional ownership. High institutional holding indicates professional validation of business quality and growth prospects. Significant FII holding suggests global investor confidence and potential for index inclusion. Monitor quarterly changes in institutional holdings for investment flow trends and sentiment.