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Sona BLW Precision Forgings incorporates a new subsidiary in Mexico!

28 June 20232 mins read by Angel One
The company has been able to grow its sales by 34% (CAGR) for the past 5 years while net profit has grown by 38% (CAGR) for the same period.
Sona BLW Precision Forgings incorporates a new subsidiary in Mexico!
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Sona BLW Precision Forgings is an automotive technology company headquartered in India. They specialize in the design, manufacturing, and supply of advanced automotive systems and components. Their product portfolio includes differential assemblies, gears, conventional and micro-hybrid motors, BSG systems, and EV traction motors, catering to various vehicle categories. In addition to hardware systems and components, the company also develops software solutions, both base and application-specific, to complement their mechanical and electrical offerings. 

Sona BLW Precision Forgings has incorporated a wholly owned subsidiary named “SONA BLW EDRIVE MEXICANA, S.A.P.I. DE C.V.” in Mexico. The subsidiary is related to the company and falls within the automotive components industry. It will be engaged in manufacturing and assembly of bevel gears, differential assemblies, and related activities in Mexico. 

The subsidiary was incorporated with a share capital of MXN$50,000 (USD 2,912.05), distributed between Sona BLW Precision Forgings Limited and Mr. Ranganathan Balaji. The subsidiary’s business is aligned with the main line of business of the company. 

Furthermore, the company recently announced results for Q4FY23 in which sales of the company surged by 35.5% to Rs 743 crore while operating profit grew by 50.3% to Rs 200 crore. Similarly, net profit of the company grew by 14.2% to Rs 120 crore as compared to Q4FY22. Moreover, the company has been able to grow its sales by 34% (CAGR) for the past 5 years while net profit has grown by 38% (CAGR) for the same period. 

The company has delivered great returns of 24.67% over the past six months and returns of 43.5% since the date of its listing in June 2021. Additionally, the company has a ROCE of 22% and a ROE of 18.3%.  

On Wednesday, shares of the company surged by 0.11% to trade at Rs 519.55. 

Investors should keep a close eye on this trending stock. 

 

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