Initiation of Coverage: The sum is greater than the parts; initiate at Buy

Research evidence excerpt

Initiation of Coverage: The sum is greater than the parts; initiate at Buy

Powered by Lab Global20 JulyResearch2026ab Evidence UBS YES

Initiation of Coverage

EquitiesSona BLW Precision Forgings Ltd

The sum is greater than the parts; initiate at Buy India

Automobile Manufacturers

12-month rating Buy

Strong legacy business with multiple growth engines Prior : No Rating

We initiate coverage on Sona BLW Precision Forgings, an India-based automotive 12m price target Rs830.00

component manufacturer with a diversified portfolio spanning differential gears, Prior :

traction motors and other driveline components, with a Buy rating and a price target of

Price (17 Jul 2026) Rs704.60

Rs830. We believe Sona is entering a new growth phase, supported by strategic

investment, partnerships and initiatives to expand its addressable market. While the RIC: SONB.BO BBG: SONACOMS IB

legacy automotive business remains well positioned to deliver healthy growth through Trading data and key metrics

market share gains, pricing benefits and a greater domestic focus, we expect its

52-wk range Rs704.60-405.25

emerging businesses to scale rapidly over the next 5 years. Thus, we forecast

Market cap. Rs438b/US$4.55b

consolidated revenue/earnings CAGRs of ~20%/~25% over the next 5 years, supported

Shares o/s 621m (ORD)

by an increasingly diversified business mix.

Free float 72%

Established track record of scaling adjacent businesses Avg. daily volume ('000) 2,289

We believe Sona's ability to identify and scale growth opportunities underpins its next Avg. daily value (m) Rs1,388.8

phase of growth across humanoid robot components, railways and sensors. The Common s/h equity (03/27E) Rs67.0b

integration of Comstar, resilience through the global EV slowdown and the railway P/BV (03/27E) 6.5x