Angel One Recommendation Company: Sona BLW Precision Rating: | Angel One

Angel One Recommendation

Company: Sona BLW Precision
Rating: Buy
Target price: 843

Rationale to invest:
Sona BLW is one of India’s leading automotive technology companies that derives 40% of its revenues from Battery Electric Vehicles (BEV) and Hybrid Vehicles. This global BEV segment has been growing fast and is expected to maintain high growth rates which are positive for Sona BLW. The company’s capabilities have enabled them to gain market share across its products especially for products related to EV/BEV. Given the traction in the BEV/Hybrid Vehicle space, we believe that Sona Comstar will continue to command a higher multiple which is justified by 47% earnings CAGR over FY21-24E.