CITI on Sona BLW ; Buy, TP Raised to Rs 960

Strong beat in 2QFY27 results, driven by a robust revenue growth. Suspension motors, traction motors and differential assemblies segments saw strong trends. Demand outlook remains positive, with tailwinds for global EVs as well as domestic E2W sectors . New products are likely to result in Sona’s growth being higher than underlying industry’s. Orderbook trends improved with (Rs251bn now vs Rs240bn as of 1QFY27 end). That said, margins are likely to remain under pressure, given 1) severe material cost inflation, 2) increase in freight rates, & 3) mix shift towards 2W traction motors (low margin).

SONA BLW PRECISION FRGS L

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