Sona BLW Share Price Target 2022, 2023, 2024, 2025, and 2030

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Sona BLW share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Sona BLW share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.

For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned Sona BLW share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.

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Sona BLW Share Price Target 2022, 2023, 2024, 2025, and 2030: Company Profile

Sona BLW Precision Forgings is one of India’s leading automotive technology companies, designing, manufacturing, and supplying highly engineered, mission-critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors (BLDC and PMSM) and motor control units to automotive OEMs across US, Europe, India, and China, for both electrified and non-electrified powertrain segments. The company is a technology and innovation-driven company.

With a strong focus on research and development (R&D), it develops mechanical and electrical hardware systems, components as well as base and application software solutions, to meet the evolving demands of its customers. It is one of a few companies globally, with the ability to design high power density EV systems handling high torque requirements with a lightweight design while meeting stringent durability, performance, and NVH specifications, enabling EV manufacturers to enhance the vehicle range, acceleration, and the overall efficiency.

The company has nine manufacturing and assembly facilities across India, China, Mexico, and the USA, of which six are located in India, from where it supplies its products to six out of the top ten global PV OEMs, three out of the top ten global CV OEMs and seven out of the top eight global tractor OEMs by volume. It currently supplies differential assemblies, differential gears, EV Traction Motors to customers in the US, China, and India, for use in hybrid and battery electric passenger vehicles, hybrid and battery electric light commercial vehicles, electric two-wheelers, and electric three-wheelers.

Business area of the company

The company is one of the leading automotive technology companies in India. It is primarily engaged in designing, manufacturing, and supplying high-quality mission-critical automotive components such as differential assemblies, gears, conventional and micro-hybrid starter motors, etc.

Share Holding Pattern

Sona BLW Share Price Target

Net Sales

Sona BLW Share Price Target

Net Profit

Sona BLW Share Price Target

Sona BLW Share Price Target 2022

FY 2020-21 was the best year for the Company, despite the COVID-19 setback, both in terms of Revenue and PBT (adjusted for exceptional items). FY 2019-20 included nearly nine months of financials of Comstar beginning with the date of its acquisition 5th July 2019, as against the full-year impact in FY 2020-21. The Consolidated revenue in FY 2020-21 grew by 28% over FY 2019-20 even after considering the Pro-forma adjustment to Revenue of Comstar for the period prior to its acquisition in FY 2019-20. Significant growth in the EV revenue, the ramp-up of volume in some new customer programs, and growth in the tractor segment in India were the main contributors to this growth.

The total expenditure increased by 41% to INR 12,547 million in FY 2020-21 as compared to INR 8,888 million during FY 2019-20 primarily due to an increase in revenue resulting from growth witnessed by the Company for reasons mentioned hereinbefore and also because of the full-year impact of the acquisition of the Comstar Entities during FY 2020-21 as compared to the impact of nearly nine months for, FY 2019-20 commencing from 5th July 2019.

As a result of the foregoing factors, Sona BLW EBITDA for the year FY 2020-21 increased to INR 4,410 million from INR 2,423 million for FY 2019-20 and Adjusted PBT for the year FY 2020-21 increased to INR 3,139 million from INR 1,550 million for FY 2019-20. Sona BLW PAT for the year FY 2020-21 decreased to 2152 million from INR 3,653 million for FY 2019-20 primarily due to exceptional income of INR 2368 and certain one-time tax adjustments in FY 2019-20 and exceptional expense of INR 139 million on account of IPO expenses in FY 2020-21.

The Company’s total debt stood at INR 3,663 million as of 31st March 2021 as against INR 3,068 million as of 31st March 2020. The net cash and cash equivalents available with the Company as of 31st March 2021 were INR 249 million and the net debt amounted to INR 3,413 million. In product segments, 28% of FY 2020-21 revenues came from Differential gears, 17% came from Differential Assembly, 27% from Micro-Hybrid Starter Motors, and 24% from Conventional Starter Motors. In terms of powertrain, Battery EV contributed 14% of FY 2020-21 revenue, micro-hybrid/Hybrids contributed 27%, Power source neutral contributed 34% and ICE contributed 25%.

Being a global supplier, 75% of the revenue of Sona BLW was dependent upon geographies outside India, and the remaining 25% from India. Key regions for the Company are North America (contributed ~36% revenue in FY 2020-21), Europe (contributed ~27%), India (contributed 25%), and China (contributed 8%). In terms of vehicle segments, Passenger Vehicles (PV) contributed 69% of FY 2020-21 sales, Off-highway vehicles contributed 17% and Commercial vehicles (CV) contributed 14%. By considering all these factors, Sona BLW share price target for 2022 is Rs 740.

Sona BLW share price target 2022
RS 750

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Sona BLW Share Price Target 2023

Electrification is clearly emerging as the biggest trend in the automobile industry. Driven by stringent emission and fuel economy (CAFE) regulations across the globe, pure ICE vehicles will no longer be a viable propulsion choice for passenger vehicles. Hence, pure ICE will continue to decline. Ricardo expects the share of pure ICE vehicles in CY 2025 to be approximately 18% of the total global production. Depending on the severity of CAFE norms across the regions, OEMs have a choice of micro (12V start-stop), mild/full hybrids, BEVs (Battery Electric Vehicles), and FCEVs (Fuel Cell Electric Vehicles) to meet corporate average fuel economy.

Ricardo expects that Micro hybrid (12V Start-Stop) to be a standard offering across passenger vehicles and hence will account for a significant share (approximately 38%) of the propulsion split in CY 2025. China and Europe will see a decline in micro hybrids in CY 2025 as the technology will not offer enough benefit to meet stricter FE.

Mild and full hybrids are expected to account for approximately 32% of the propulsion split in CY 2025 with mild hybrids being the dominant technology. Mild hybrids offer the quickest route to electrification with limited complexity (compared to full hybrids) and substantial fuel economy benefits. Approximately 80% of mild hybrid volumes in CY 2025 will be in Europe and China.

Among the available propulsion technologies, BEV has been the fastest-growing at a CAGR of approximately 46% between CY 2015 to 2025. As fuel economy norms get more stringent over time and countries introduce legislation to ban fossil fuel vehicles, the proportion of BEVs will increase over time. It is expected to grow at approximately 36% CAGR between CY 2020 to 2025. In CY 2025 Ricardo expects BEVs to account for approximately 12% (approximately 11 million units) of the global production.

In CY 2020, the global production of BEVs (Battery Electric Vehicle) stood at approximately 2.3 million units. Tesla accounted for approximately 21% of the share while Renault Nissan & Volkswagen accounted for approximately 12% and approximately 10% respectively. For the next five years, automakers have announced plans to release more than 200 new electric car models. Electrification in India is expected to be led by three-wheelers and two-wheelers; with electric two-wheelers expected to grow at a CAGR of 70% to 74% between FY 2021 to 2026 and electric three-wheelers to grow at a CAGR of approximately 46% between CY 2021 and CY 2025. By considering all these factors, Sona BLW share price target for 2023 is Rs 840.

Sona BLW share price target 2023
Rs 840

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Sona BLW Share Price Target 2024

The business of the Company is dependent on the performance of the automotive sector globally, including key markets such as the US, Europe, India, and China. Any adverse changes in economic and political conditions affecting these markets can adversely impact business, results of operations, and financial conditions.

Over the years, Sona BLW has widened its offerings to bring focus on the electrification trend which is sweeping the automotive landscape. The Company has fortified its R&D capabilities and has built an experienced and able team with expertise in its areas of focus. It serves large global OEM and Tier-1 customers and boasts a rich track record of delivering high-quality automotive systems and components for EV as well as conventional powertrains.

Growth in the EV segment and global market share would be the cornerstones of the Company’s growth strategy. Recovery in the global automotive market after 3 years of contraction should act as a tailwind. Electrification is set to gain further traction and projections by renowned industry publications indicate an acceleration in the customer preference for electrification due to multiple factors such as improved infrastructure, the reduced total cost of ownership, and fiscal incentives among others over the coming years. We feel Sona BLW is well-positioned to gain from this megatrend.

Benefiting from integrated powertrain systems in EVs: According to the Ricardo Report, Sona BLW is among the limited number of players who are well placed to combine its motor and driveline capabilities to offer a compelling value proposition to its EV customer base. Integrated drive units have three key components namely, differential assembly, high voltage traction motors, and high voltage inverters.

Since Sona BLW already manufactures electric drive motors and inverters for electric 2-wheelers and hybrid PVs, as well as differential assemblies for battery electric passenger vehicles, Sona BLW is in a unique position to integrate the three key constituents of the electric powertrain into a single matched unit, offering an efficient and compact solution to EV OEMs. Sona BLW share price target for 2024 is Rs 960.

Sona BLW share price target 2024
RS 960

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Sona BLW Share Price Target 2025

Global light vehicle production has remained flat between 2015 and 2019, according to the Ricardo report. However, vehicle production declined by approximately 18% in CY 2020 due to the COVID-19 pandemic. Countries across the world have resorted to unprecedented fiscal and monetary stimulus to cushion the economic impact of COVID-19 and to speed up recovery. This is expected to support recovery in the production and sale of light vehicles across major markets.

The CY 2021 growth is expected to be primarily driven by the Chinese market. Overall global volumes are expected to reach approximately 92 million in CY 2025 with China, Europe, and North America continuing to account for approximately 70% of the global production volumes.

Sona BLW is among India’s leading automotive technology companies. It designs, manufactures, and supplies highly engineered, mission-critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors (BLDC and PMSM), and motor control units to automotive OEMs across the US, Europe, India, and China, for both electrified and non-electrified powertrain segments.

The Company has nine manufacturing and assembly facilities across India, the USA, Mexico, and China, of which six are located in India. In CY 2020, the Company was among the top ten players globally in the differential bevel gear market on the basis of overall volumes of differential bevel gears supplied to PVs, CVs, and tractors. It was also among the top ten global starter motor suppliers based on its exposure to the PV segment and market share in CY 2020.

The Company is a global supplier and around 75% of its revenues are dependent upon international geographies. It is also one of the two largest exporters of starter motors from India.

With product offerings spanning across all types of conventional and electrified powertrains, the Company is one of the few automotive technology manufacturers that are well-positioned to gain from conventional platforms as well as the evolving high growth industry trend of electrification. Sona BLW share price target for 2025 is Rs 1,150.

Sona BLW share price target 2025
Rs 1,150

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Sona BLW Share Price Target 2030

The global trend towards the electrification of vehicles continues to expand. According to the Ricardo Report, the key drivers of vehicle electrification include climate change and public awareness of the importance to reduce CO2 emissions and other pollutants, ban on fossil fuel vehicles by some countries, government support, and fiscal incentives that support the trend towards vehicle electrification, stringent emission and fuel economy norms introduced by several countries to combat the impact of climate change and encourage alternate cleaner fuels, increasing investment in charging infrastructure for EVs and decline in battery price contributing towards adoption of EVs.

Among the available propulsion technologies, BEV has been the fastest growing at a CAGR of approximately 46% between CY 2015 to 2020 and is expected to experience increased market penetration growing at a CAGR of approximately 36% between CY 2020 to 2025, according to Ricardo Report. The product offerings span all types of electrified powertrains. The commitment and focus towards ESG will continue increasing going forward as it plans to increase the EV share of its revenue.

Sona BLW seeks to continue to cement its commitment and focus towards compliance with ESG norms, as its plans to increase the share of its income derived from the sale of goods in the EV market. As part of its growth strategy, Sona BLW plans to increase its market share in both the Indian and overseas markets by catering specifically to EV OEMs, across three product groups.

EV traction motors (BLDC and PMSM) and motor control units: With the growing market shift towards electrification of vehicles, the demand for hybrid and battery electric PVs, electric two-wheelers, and electric three-wheelers is growing rapidly in India and globally. According to the Ricardo Report, the full hybrid market is expected to grow by approximately three times in terms of absolute volume by CY 2025, accounting for approximately 12.0% of the propulsion split for PVs in CY 2025, and the BEV market is expected to grow by around five times by 2025, accounting for approximately 12.2% of the propulsion split for PVs in CY 2025.

Further, according to the CRISIL Report, the two-wheeler EV sales are expected to expand at a CAGR of 70% to 74% over FY 2021 to 2026 and according to Ricardo Report, the electric three-wheeler segment is expected to grow at a CAGR of approximately 46% between CY 2021 and 2025 to reach 400,000 units in sales.

Since Sona BLW design and manufactures traction motors and motor control units for electric vehicles, with PMSM motors for EV and hybrid PVs and BLDC motors for electric two-wheelers and electric three-wheelers, the company is well-positioned to benefit from the expected growth in the Indian EV market across all vehicle categories. By considering all these factors and the opportunities that Sona BLW has to grow its business in the future, Sona BLW share price target for 2030 is Rs 3,700.

Sona BLW share price target 2030
Rs 3,700

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Sona BLW Share Price Target 2022, 2023, 2024, 2025, and 2030

YearSona BLW Share Price Target
Sona BLW share price target 2022Rs 750
Sona BLW share price target 2023Rs 840
Sona BLW share price target 2024Rs 960
Sona BLW share price target 2025Rs 1,150
Sona BLW share price target 2030Rs 3,700

Frequently Asked Questions

What is the target for Sona BLW?

Sona BLW share price target for 2022 is Rs 750, Sona BLW share price target for 2023 is Rs 840, Sona BLW share price target for 2024 is Rs 960, Sona BLW share price target for 2025 is Rs 1,150, and Sona BLW share price target for 2030 is Rs 3,700.

Is Sona BLW a good buy?

Yes, Sona BLW is one of the best companies to play in the EV segment. With product offerings spanning across all types of conventional and electrified powertrains, the Company is one of the few automotive technology manufacturers that are well-positioned to gain from conventional platforms as well as the evolving high growth industry trend of electrification.

What is the future of Sona BLW?

Sona BLW seeks to continue to cement its commitment and focus towards compliance with ESG norms, as its plans to increase the share of its income derived from the sale of goods in the EV market. As part of its growth strategy, Sona BLW plans to increase its market share in both the Indian and overseas markets by catering specifically to EV OEMs, across three product groups

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