ScoreWhy is Sona BLW Precision Forgings Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0.02 times
2
Poor long term growth as Operating profit has grown by an annual rate 10.53% of over the last 5 years
- 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.
3
With ROE of 11, it has a Very Expensive valuation with a 5.3 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 -23.20%, its profits have risen by 8.9% ; the PEG ratio of the company is 5.4
4
High Institutional Holdings at 63.6%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -23.20% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
6
With its market cap of Rs 30,604 cr, it is the second biggest company in the sector (behind Bharat Forge)and constitutes 21.27% of the entire sector
- Its annual Sales of Rs 3,724.86 are 8.17% of the industry
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sona BLW Precis. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sona BLW Precis. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sona BLW Precis.
-23.2%
-0.69
33.43%
Sensex
3.75%
0.32
11.86%
Quality
Management Risk
Growth
Capital StructureQuality 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
0
Institutional Holding
63.60%
ROCE (avg)
21.14%
ROE (avg)
14.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
48
Industry P/E
35
Price to Book Value
5.29
EV to EBIT
43.57
EV to EBITDA
31.26
EV to Capital Employed
5.58
EV to Sales
8.01
PEG Ratio
5.44
Dividend Yield
0.66%
ROCE (Latest)
12.81%
ROE (Latest)
10.98%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What 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 yearsMOJO 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 quartersMOJO 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 CrMOJO 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 quartersMOJO 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 quartersMOJO 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 CrMOJO 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 quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.78
in the last five quartersMOJO 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 periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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