Sona BLW shares jump 4% after BoFA upgrades to ‘buy’ on three growth engines

Shares of Sona BLW Precision Forgings Ltd. surged as much as 4% on Wednesday, March 11, after brokerage firm BoFA Securities upgraded the stock to “buy” in its latest note.Along with the upgrade to “buy”, BoFA Securities has also raised its price target on the auto components manufacturer to ₹640 from ₹600 earlier, implying an upside potential of 25% from Tuesday’s closing levels.

The brokerage wrote in its note that Sona BLW’s business has returned to the growth trajectory after a “pretty tough period.”
BoFA Securities has cited three key growth engines for the company going forward:One, its traction motors business for electric two vehicles and three wheelers, is set to double in the next two years.

Two, the Driveline business has also begun to grow after two years of no growth.Lastly, the company’s railways business could turn out to be an unprecedented growth driver, with many entry barriers.

As a result of these key growth drivers, BoFA Securities has raised its Earnings Per Share (EPS) estimates for Sona BLW by 2% to 7%.

BoFA Securities expects Sona BLW’s revenue to grow at a Compounded Annual Growth Rate (CAGR) of 20% over financial year 2026-2028, while its Earnings per Share (EPS) can grow at a 23% CAGR over the same timeframe.

19 analysts have coverage on Sona BLW of which 15 have a “buy” rating, three say “hold” and the other one has a “sell” recommendation. The consensus estimates of price targets implies an upside potential of 7% from current levels for the stock.

Shares of Sona BLW are trading 4% higher on Wednesday at ₹532.3. The stock is closing in on its recent 52-week high of ₹559.5.