Jefferies has cut its target price on Sona BLW to ₹565 from ₹700, maintaining a ‘Buy’ rating while flagging concerns around North American business headwinds due to US tariffs and a slowdown in EV volume growth.
In Q4FY25, the company posted a 1.3% YoY rise in net profit to ₹164 crore, while revenue dipped 2% YoY to ₹868 crore. EBITDA came in at ₹235 crore, down 5%, with margins narrowing to 27.1% from 28% last year. The earnings were partly supported by a sharp rise in other income to ₹52 crore.
Jefferies reduced its EPS estimates by 25% for FY26–27, citing rising geopolitical and trade-related pressures, especially in export-heavy markets like the US. It also highlighted that while short-term pain is evident, India-US trade talks could help restore competitiveness for Indian exporters.
Despite the sharp target cut, Jefferies sees long-term upside driven by Sona BLW’s expanding portfolio across EV drivetrains and global OEM partnerships.
Disclaimer: The above views are those of the brokerage and not the publication. Investors are advised to consult a certified financial advisor before making investment decisions.
