Shares of Sona BLW Precision Forgings Ltd. jumped by over 7% during early trading on February 4, 2025, hitting an intraday high of ₹522.60. The stock was trading at ₹511.60 as of 9:32 AM IST, up by 5.38% from its previous close of ₹485.50. The company’s market capitalization stood at ₹321.43 billion.
The surge in the stock price follows US President Donald Trump’s decision to delay the imposition of 25% tariffs on goods imported from Mexico and Canada. This pause, scheduled for 30 days, comes as a temporary relief to auto component exporters.
Sona BLW derives around 2% of its overall revenue from exports to Mexico, where it uses local facilities for assembly. The tariff delay alleviates short-term concerns surrounding its operations, giving the company time to strategize against potential disruptions if tariffs are imposed.
Monday’s session saw Sona BLW shares decline sharply due to fears that the tariffs would disrupt the supply chain and increase costs for auto manufacturers like General Motors and Toyota, which source components from Mexico.
With India’s auto component exports to Mexico amounting to approximately $656 million annually, the tariff pause has given Indian exporters like Sona BLW a chance to adapt and maintain steady operations. However, market participants will closely monitor any updates regarding tariff negotiations in the coming weeks.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice.
