Nomura has maintained its buy rating on Sona BLW Precision Forgings and raised its target price to ₹605 per share, highlighting the company’s resilience amid challenging global auto component market conditions. The brokerage said Q2FY26 revenue growth was led by strong performance in the railways and traction motor businesses, both of which exceeded expectations.
Nomura believes Sona is positioned to benefit from the recent financial strain among European auto component suppliers, several of whom have filed for insolvency. It estimates a near-term business opportunity of about €300 million, of which Sona could capture 15–20% share. The brokerage said such wins would help diversify the company’s revenue base and strengthen its position in high-margin mobility segments.
Additionally, order wins across multiple verticals — including traction motors, suspension systems, and railways — are expected to drive further scale-up in the coming quarters. Nomura noted that the stock trades at 39x FY27F EPS, which it considers attractive given Sona’s strong execution, diversified growth visibility, and margin profile.
Disclaimer: The views and recommendations above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
