Shares of this auto ancillary company rally after the announcement of EPS accreditive acquisition!

Shares of this auto ancillary company rally after the announcement of EPS accreditive acquisition!

by 5paisa Research Team Last Updated: Jan 10, 2023 - 03:22 pm 4.3k Views
Listen icon

Yesterday, the company reported that it has signed an agreement to acquire a 54% equity stake in a Serbia-based company.

The shares of Sona BLW Precision Forgings Ltd (Sona Comstar) are buzzing on the bourses today. As of 11.58 am, the shares of the company are trading higher by 7.50%. Today, the company reported a spurt in trading volume by more than 4.42 times. Owing to this, the stock is one of the top gainers on BSE from Group A. Meanwhile, the frontline index S&P BSE Sensex is down by 0.94%.

The rally in the share price of Sona BLW Precision Forgings Ltd has come on the back of a significant announcement made by the company.

Yesterday, the company reported that it has signed an agreement to acquire a 54% equity stake in NOVELIC, a Serbia-based company that is a leading provider of mmWave radar sensors, perception solutions and full-stack embedded systems.

ADAS sensors are a fast-growing category in the automotive industry, with a potential market size of USD 43 billion in 2030. Notably, NOVELIC is one of the very few profitable, high-tech, and fast-growing companies in the ADAS Sensor space. It is vertically integrated across the value chain from machine learning and perception software to hardware and chip design; its partners include global automotive OEMs, autonomous vehicle makers, Tier-1s and chip manufacturers like Infineon and Texas Instruments.

The acquisition is expected to be EPS accretive for Sona Comstar from the first year and offers strong growth opportunities over the medium term.

The company is currently trading at a TTM PE of 68x, as against the industry PE of 35x. In FY22, the company delivered an ROE & ROCE of 21.4% and 23.6%, respectively. The company is a constituent of Group A stocks and commands a market capitalization of Rs 26,410.68 crore.

Today, the scrip opened at Rs 446 and has touched a high and low of Rs 457.30 and Rs 431.55, respectively. So far 2,98,037 shares have been traded on the bourses. The stock has a 52-week high & low of Rs 795 and Rs 397.35 respectively on BSE.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024.

Aspire & Innovative IPO Subscribed 15.17 times

Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.

Blue Pebble IPO Subscribed 56.32 times

Blue Pebble IPO, valued at ₹18.14 crores, comprises fresh issue of 10.8 lakh shares. Commencing subscription on March 26, 2024, Blue Pebble IPO is set to conclude on March 28, 2024. Allotment process is scheduled to be finalized by Monday, April 1, 2024. Following this, IPO is slated to debut on NSE SME, with tentative listing date of Wednesday, April 3, 2024.