Sona BLW Precision Forgings Limited

NSEI:SONACOMS Stock Report

Market Cap: ₹415.5b

Sona BLW Precision Forgings Valuation

Is SONACOMS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SONACOMS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SONACOMS (₹667.75) is trading above our estimate of fair value (₹336.1)

Significantly Below Fair Value: SONACOMS is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SONACOMS?

Key metric: As SONACOMS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SONACOMS. This is calculated by dividing SONACOMS's market cap by their current earnings.
What is SONACOMS's PE Ratio?
PE Ratio73.1x
Earnings₹5.67b
Market Cap₹415.52b

Price to Earnings Ratio vs Peers

How does SONACOMS's PE Ratio compare to its peers?

The above table shows the PE ratio for SONACOMS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average59.2x
ENDURANCE Endurance Technologies
43.2x20.4%₹332.0b
532539 Uno Minda
61.9x21.0%₹572.6b
500493 Bharat Forge
64.1x27.7%₹606.8b
ZFCVINDIA ZF Commercial Vehicle Control Systems India
67.5x21.4%₹276.3b
SONACOMS Sona BLW Precision Forgings
73.1x25.1%₹415.0b

Price-To-Earnings vs Peers: SONACOMS is expensive based on its Price-To-Earnings Ratio (73.1x) compared to the peer average (59.2x).

Price to Earnings Ratio vs Industry

How does SONACOMS's PE Ratio compare vs other companies in the IN Auto Components Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
513262 Steel Strips Wheels
4.8x-31.3%US$374.55m
INNOVATIVE Innovative Tyres & Tubes
0.3xn/aUS$1.22m
505100 India Radiators
0.8xn/aUS$90.19k
523415 Coventry Coil-O-Matic (Haryana)
0.9xn/aUS$88.40k
No more companies available in this PE range
SONACOMS 73.1xIndustry Avg. 30.5xNo. of Companies17PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SONACOMS is expensive based on its Price-To-Earnings Ratio (73.1x) compared to the Indian Auto Components industry average (30.5x).

Price to Earnings Ratio vs Fair Ratio

What is SONACOMS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SONACOMS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio73.1x
Fair PE Ratio39.8x

Price-To-Earnings vs Fair Ratio: SONACOMS is expensive based on its Price-To-Earnings Ratio (73.1x) compared to the estimated Fair Price-To-Earnings Ratio (39.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SONACOMS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹667.75
₹760.50
+13.9%
8.1%₹850.00₹640.00n/a14
Nov ’25₹697.20
₹760.50
+9.1%
8.1%₹850.00₹640.00n/a14
Oct ’25₹731.05
₹747.40
+2.2%
9.7%₹850.00₹605.00n/a15
Sep ’25₹683.35
₹727.07
+6.4%
8.7%₹800.00₹605.00n/a15
Aug ’25₹672.55
₹727.07
+8.1%
8.7%₹800.00₹605.00n/a15
Jul ’25₹669.60
₹679.53
+1.5%
12.1%₹805.00₹520.00n/a15
Jun ’25₹651.10
₹679.20
+4.3%
12.1%₹805.00₹520.00n/a15
May ’25₹625.35
₹676.00
+8.1%
12.5%₹805.00₹520.00n/a15
Apr ’25₹684.20
₹657.93
-3.8%
12.6%₹794.00₹505.00n/a15
Mar ’25₹671.35
₹657.27
-2.1%
12.5%₹794.00₹505.00n/a15
Feb ’25₹629.25
₹657.27
+4.5%
12.5%₹794.00₹505.00n/a15
Jan ’25₹645.65
₹616.64
-4.5%
12.2%₹700.00₹475.00n/a14
Dec ’24₹562.15
₹604.33
+7.5%
13.2%₹700.00₹475.00n/a15
Nov ’24₹542.55
₹604.33
+11.4%
13.2%₹700.00₹475.00₹697.2015
Oct ’24₹583.40
₹614.33
+5.3%
14.5%₹703.00₹450.00₹731.0515
Sep ’24₹592.25
₹610.00
+3.0%
14.2%₹703.00₹450.00₹683.3515
Aug ’24₹567.05
₹615.13
+8.5%
14.2%₹725.00₹450.00₹672.5516
Jul ’24₹515.85
₹547.75
+6.2%
15.7%₹725.00₹400.00₹669.6016
Jun ’24₹530.20
₹547.75
+3.3%
15.7%₹725.00₹400.00₹651.1016
May ’24₹480.00
₹531.31
+10.7%
17.2%₹725.00₹400.00₹625.3516
Apr ’24₹413.50
₹536.63
+29.8%
17.2%₹725.00₹400.00₹684.2016
Mar ’24₹459.95
₹542.79
+18.0%
17.6%₹725.00₹400.00₹671.3514
Feb ’24₹456.55
₹543.07
+19.0%
18.1%₹725.00₹400.00₹629.2514
Jan ’24₹419.50
₹567.14
+35.2%
16.5%₹725.00₹430.00₹645.6514
Dec ’23₹463.20
₹567.14
+22.4%
16.5%₹725.00₹430.00₹562.1514
Nov ’23₹474.70
₹566.57
+19.4%
16.5%₹725.00₹430.00₹542.5514

Analyst Forecast: Target price is less than 20% higher than the current share price.

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