Sona BLW share price rises 4% on securing certification under PLI scheme

Sona BLW stock surges: Sona BLW Precision Forgings shares rose as much as 3.67 per cent to hit an intraday high of Rs 665 per share on Wednesday. 

The jump in the stock price came after Sona BLW announced that it has secured certification for its traction motor for electric 3-wheelers under production-linked incentive (PLI) scheme.

In an exchange filing, Sona BLW said, “We hereby wish to inform that the company has received certification for its another product i.e. Traction Motor for electric three wheelers under the Production-Linked Incentive (“PLI”) scheme for automobile and auto component industry in India (“PLI-Auto”) from the Ministry of Heavy Industries on June 18, 2024, for availing the benefits/incentive under PLI Scheme.”

Sona BLW Precision Forgings, formerly known as Sona Okegawa Precision Forgings, is an automotive technology company based in Gurugram, India. The company specialises in designing, manufacturing, and supplying a wide range of systems and components for the global automotive industry.

Its product offerings include traction motors, controllers, differential bevel gears, complete differential assemblies, spool gears, integrated motor controller modules, drive motors, hub wheel motors, e-axles, starter motors, belt starter generators, reverse idlers, portal axle gears, couplings/sleeves, conventional and micro-hybrid starter motors, BSG systems, epicyclic geartrains/gears, inter-axle gear sets, EV traction motors, motor control units, electronically locking differentials, intermediate gears, and input/rotor shafts.

These products cater to a diverse range of applications including conventional and electric passenger vehicles, commercial vehicles, off-highway vehicles, as well as electric two and three-wheelers globally.

Financial performance
 

The net profit of Sona BLW Precision Forgings rose 24.1 per cent to Rs 148.7 crore in the March quarter of FY24 (Q4Fy24), as opposed to Rs 119.8 crore in the same quarter  a year ago (Q4FY23).

Sales, meanwhile, jumped over 19 per cent to Rs 884.1 crore in the quarter ended March 2024, from Rs 742.6 crore during the previous quarter ended March 2023.

The market capitalisation of the company is Rs 38,498.20 crore, according to Bombay Stock Exchange (BSE).

The 52-week high of the share is Rs 718.55 while its 52-week low is Rs 489.

At 9:53 AM, shares of the company were trading 2.32 per cent higher at Rs 656.30 per share. By comparison, BSE Sensex was trading 0.19 per cent at 77,444.52 levels.