Sona BLW Precision Forgings Limited (SONACOMS.BO) stock analysis

In our weekly check, Sona BLW Precision Forgings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5.

About Sona BLW Precision Forgings Limited

Sona BLW Precision Forgings Limited is a Consumer Cyclical company (Auto - Parts) based in India, listed on BSE as SONACOMS.BO.

What our checks show for SONACOMS.BO

Red flags

• Operating profit does not cover the interest bill (0.4x): interest is paid from cash or new debt.
• The gross margin fell by 16.3 points, to 36.6%: costs are rising faster than prices.
• The dividend takes 2953% of profit: little cushion if profit falls.
• The price is 74.2 times earnings (P/E): the market already pays for a lot of future growth.
• Recovering from its deepest fall took about 3.5 years.

Warning signs

• The net margin fell by 2.7 points over 5 years, to 14.4%: the company keeps less of each sale as profit.
• The stock has fallen as much as 51% from a peak. Would you have held through that?
• Thinly traded (about 244 thousand shares a day): buying and selling can move the price.

Strengths

• Net debt is only 0.1x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 1.21x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 29.2% a year over the next years.
• Analysts expect revenue to grow about 23.4% a year over the next years.
• Revenue grew 18.8% a year over the last 3 years.
• Earnings per share grew 15.1% a year over the last 3 years.

Next earnings report: 2027-01-26

Similar companies

MRF.NS · EXIDEIND.NS · 5334.T · BOSCHLTD.NS · 7259.T · 2338.HK

Questions

What grade does Sona BLW Precision Forgings Limited (SONACOMS.BO) have?

In our weekly check, Sona BLW Precision Forgings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SONACOMS.BO stock?

This week's biggest flags for Sona BLW Precision Forgings Limited: Weak interest cover, Gross margin falling, Dividend stretched. In total 8 of 25 checks show a warning or a red flag.

What does Sona BLW Precision Forgings Limited do?

Sona BLW Precision Forgings Limited is a Consumer Cyclical company (Auto - Parts) based in India, listed on BSE as SONACOMS.BO.

When does Sona BLW Precision Forgings Limited report earnings next?

The next earnings report is expected on 2027-01-26. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis