Sona BLW Precision Forgings Ltd (SONACOMS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Sona BLW Precis.

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Why is Sona BLW Precision Forgings Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 10.53% of over the last 5 years

With ROE of 11, it has a Very Expensive valuation with a 5.4 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.27%, its profits have risen by 8.9% ; the PEG ratio of the company is 5.6

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.42% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -27.27% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sona BLW Precis. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sona BLW Precis.

-27.16%

-0.82

33.23%

Sensex

4.56%

0.45

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.20%

EBIT Growth (5y)

10.53%

EBIT to Interest (avg)

25.54

Debt to EBITDA (avg)

0.41

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.89

Tax Ratio

25.16%

Dividend Payout Ratio

33.09%

Pledged Shares

Institutional Holding

63.60%

ROCE (avg)

21.14%

ROE (avg)

14.59%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.45

EV to EBIT

44.89

EV to EBITDA

32.21

EV to Capital Employed

5.75

EV to Sales

8.26

PEG Ratio

5.60

Dividend Yield

0.64%

ROCE (Latest)

12.81%

ROE (Latest)

10.98%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CF(Y)

Highest at Rs 775.19 Cr

NET SALES(Q)

Highest at Rs 1,138.29 cr

PBDIT(Q)

Highest at Rs 283.83 cr.

PBT LESS OI(Q)

At Rs 207.05 cr has Grown at 30.4% (vs previous 4Q average

PAT(Q)

Highest at Rs 174.02 cr.

EPS(Q)

Highest at Rs 2.78

-5What is not working for the Company

ROCE(HY)

Lowest at 14.37%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.07 times

Loading Valuation Snapshot...

Here's what is working for Sona BLW Precis.

Operating Cash Flow - Annually

Highest at Rs 775.19 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 1,138.29 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 1,138.29 cr has Grown at 29.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 877.19 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 283.83 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 207.05 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 207.05 cr has Grown at 30.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 158.84 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 174.02 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 2.78

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Sona BLW Precis.

Debtors Turnover Ratio- Half Yearly

Lowest at 4.07 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio