Sona BLW Precision Forgings Shares Jump 4% After BoFA Securities Upgrades Stock to Buy

Sona BLW Precision Forgings Shares Jump 4% After BoFA Securities Upgrades Stock to Buy​

Brokerage Raises Price Target to ₹640, Sees 25% Upside​

Shares of Sona BLW Precision Forgings Ltd. rose as much as 4 percent on Wednesday, March 11, after brokerage firm BoFA Securities upgraded the stock to a buy rating in its latest report.

Along with the upgrade, BoFA Securities increased its price target on the auto components manufacturer to ₹640 per share from ₹600 earlier. The revised target suggests a potential upside of about 25 percent from Tuesday’s closing level.

Key Growth Drivers Identified by BoFA Securities​

According to the brokerage, Sona BLW Precision Forgings has returned to a growth trajectory after a challenging phase. The report highlighted three major drivers expected to support the company’s expansion.

First, the company’s traction motors business catering to electric two wheelers and three wheelers is projected to double over the next two years.

Second, the Driveline business has started witnessing growth again after a period of stagnation.

Third, the brokerage noted that the railway segment could emerge as a significant growth driver for the company due to multiple entry barriers in the sector.

Earnings and Revenue Growth Outlook​

Supported by these growth drivers, BoFA Securities has raised its earnings per share estimates for Sona BLW by 2 percent to 7 percent.

The brokerage expects the company’s revenue to grow at a compound annual growth rate of 20 percent between financial years 2026 and 2028. Earnings per share are projected to expand at a CAGR of 23 percent during the same period.

Analyst Coverage and Stock Performance​

Sona BLW Precision Forgings is currently tracked by 19 analysts. Among them, 15 analysts have a buy rating on the stock, three recommend hold, and one has a sell rating.

The consensus price target from analysts implies a potential upside of around 7 percent from the current market level.

Shares of Sona BLW Precision Forgings were trading about 4 percent higher at ₹532.3 on Wednesday. The stock is approaching its recent 52 week high of ₹559.5.