Sona BLW: Expanding the EV Runway; Upgrade to Outperform

研报英文原文证据摘录

Sona BLW: Expanding the EV Runway; Upgrade to Outperform

23 July 2026

Rating Change

Venugopal Garre

+65 6326 7643

India SMID Portfolio venugopal.garre@bernsteinsg.com

Sona Blw Precision Forgings Ltd Param Shah

+91 226 842 1417

Rating param.shah@bernsteinsg.com

Outperform (Market-Perform OLD)

Price Target

SONACOMS.IN 850.00 INR (660.00 OLD)

A few weeks ago, we highlighted the recovery underway at Sona BLW, supported by

Close Date 22 Jul 2026

improving business momentum and a strengthening pipeline. The announcement of two

SONACOMS.IN Close Price (INR) 726.50

EV-focused JVs with Denso marks a significant strategic milestone, expanding Sona's

Price Target (INR) 850.00

addressable market and strengthening its position across the EV value chain. While

Upside/(Downside) 17%

near-term earnings impact will be limited, we see meaningful long-term upside from the

52-Week Range 739.50/402.30

partnership. We raise our target to Rs850 and upgrade the stock to Outperform.

ASIAX 1,907.19

Sona has established strong positions in drivetrain components such as differential gears FYE Mar

but has yet to achieve meaningful scale in EV traction motors. The Denso partnership directly Div Yield 0.5%

addresses this gap. The two companies are creating dedicated platforms for different vehicle Market Cap (INR) (M) 452,389

segments: one focused on electrified powertrain systems for passenger and larger vehicles, EV (INR) (M) 446,016

and the other focused on next-generation drive technologies for 2Ws and 3Ws, where Performance YTD 1M 6M 12M

Sona will transfer its existing business. To date, Sona's EV motor exposure has been largely Absolute (%) 51.5 17.9 59.3 48.6

confined to the 2W segment. ASIAX (%) 16.6 (4.5) 11.1 28.3

Relative (%) 34.9 22.4 48.2 20.3