Latest news with #SonaBLW
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Business Standard
3 days ago
- Automotive
- Business Standard
How will Sona BLW's JV with JNT unlock ₹1,670 crore TAM? Stock up 3%
Sona BLW Precision Forgings shares rose 3.4 per cent, logging an intraday high at ₹496.3 per share on BSE. At 12 PM, Sona BLW share price was trading 1.72 per cent higher at ₹258.8 per share on the BSE. In comparison, the BSE Sensex was up 0.36 per cent at 82,052.49. The company's market capitalisation stood at ₹30,339.98 crore. The 52-week high of the stock was at ₹767.8 per share, and the 52-week low of the stock was at ₹379.8 per share. Why were Sona BLW Precisions shares buzzing in trade? The buying interest on the counter came after the company signed a binding term sheet with Jinnaite Machinery (JNT) to establish a joint venture (JV) company in China. According to the filing, the JV will manufacture and supply driveline systems and components to automotive original equipment manufacturers (OEMs) in China and globally. Sona Comstar will invest $12 million, while JNT will contribute $8 million in assets and business to the joint venture in the first phase. The JV is expected to commence operations in the second half of the current financial year, marking a significant milestone in Sona Comstar's expansion into the Chinese EV market. The driveline manufacturing operations in China align with the company's strategy to expand its presence in Asian markets, particularly in India, China, Japan, and South Korea, while also working to increase its market share further in North America and Europe, according to Sona BLW Domestic brokerage JM Financial Institutional Securities believes this JV will represent a significant growth opportunity for Sona BLW as the company would not have entered this venture without a strong anchor customer (mostly BYD). Based on the brokerages estimates, the JV could unlock a total addressable market (TAM) of ₹1,670 crore (48 per cent of Sona's FY25 revenue), with potential upside if the JV onboards other global and domestic EV players like Tesla in China. The brokerage has maintained a 'Buy' on the stock with a target of ₹630 per share. About Sona BLW Sona Comstar is a global supplier of driveline solutions for various automotive segments and is strategically expanding its presence in the faster-growing Asian markets. The company is the largest supplier of differential assemblies for battery electric vehicles (BEVs) in North America and ranks among the top suppliers in Europe. About Jinnaite Machinery Co The company operates a world-class foundry utilising patented technology to manufacture complex castings and molds. JNT holds 63 patents and 36 proprietary technologies, and it is actively engaged in the formulation of Chinese national standards, having contributed to the development of five national standards. Its strong customer base in the automotive, off-highway, and railway sectors, including leading Chinese automotive OEMs, as well as those from North America, Europe, and Japan, further underscores its expertise and capabilities.
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Business Standard
3 days ago
- Automotive
- Business Standard
How could Sona BLW's JV with JNT unlock ₹1,670 crore TAM? Stock up 3%
Sona BLW Precision Forgings shares rose 3.4 per cent, logging an intraday high at ₹496.3 per share on BSE. At 12 PM, Sona BLW share price was trading 1.72 per cent higher at ₹258.8 per share on the BSE. In comparison, the BSE Sensex was up 0.36 per cent at 82,052.49. The company's market capitalisation stood at ₹30,339.98 crore. The 52-week high of the stock was at ₹767.8 per share, and the 52-week low of the stock was at ₹379.8 per share. Why were Sona BLW Precisions shares buzzing in trade? The buying interest on the counter came after the company signed a binding term sheet with Jinnaite Machinery (JNT) to establish a joint venture (JV) company in China. According to the filing, the JV will manufacture and supply driveline systems and components to automotive original equipment manufacturers (OEMs) in China and globally. Sona Comstar will invest $12 million, while JNT will contribute $8 million in assets and business to the joint venture in the first phase. The JV is expected to commence operations in the second half of the current financial year, marking a significant milestone in Sona Comstar's expansion into the Chinese EV market. The driveline manufacturing operations in China align with the company's strategy to expand its presence in Asian markets, particularly in India, China, Japan, and South Korea, while also working to increase its market share further in North America and Europe, according to Sona BLW Domestic brokerage JM Financial Institutional Securities believes this JV will represent a significant growth opportunity for Sona BLW as the company would not have entered this venture without a strong anchor customer (mostly BYD). Based on the brokerages estimates, the JV could unlock a total addressable market (TAM) of ₹1,670 crore (48 per cent of Sona's FY25 revenue), with potential upside if the JV onboards other global and domestic EV players like Tesla in China. The brokerage has maintained a 'Buy' on the stock with a target of ₹630 per share. About Sona BLW Sona Comstar is a global supplier of driveline solutions for various automotive segments and is strategically expanding its presence in the faster-growing Asian markets. The company is the largest supplier of differential assemblies for battery electric vehicles (BEVs) in North America and ranks among the top suppliers in Europe. About Jinnaite Machinery Co The company operates a world-class foundry utilising patented technology to manufacture complex castings and molds. JNT holds 63 patents and 36 proprietary technologies, and it is actively engaged in the formulation of Chinese national standards, having contributed to the development of five national standards. Its strong customer base in the automotive, off-highway, and railway sectors, including leading Chinese automotive OEMs, as well as those from North America, Europe, and Japan, further underscores its expertise and capabilities.
Business Upturn
3 days ago
- Automotive
- Business Upturn
Sona BLW shares rise over 3% as company signs joint venture deal in China
Shares of Sona BLW Precision Forgings Ltd (Sona Comstar) climbed over 3% to ₹495.50 in early trade today after the company announced a strategic joint venture agreement with Jinnaite Machinery Co (JNT) to expand its presence in China. According to an exchange filing, the stock gained as much as 2.14% from its previous close of ₹479.75 on the NSE. At the time of reporting, Sona BLW shares were trading at ₹490, within the day's range of ₹485.10 – ₹496.45. The company's market capitalization stood at ₹3.04 lakh crore. In the announcement, Sona BLW said it has signed a binding term sheet with Jinnaite Machinery to form a joint venture (JV) in China to manufacture and supply driveline systems and auto components, with a focus on the growing electric vehicle (EV) market. In the first phase of the JV, Sona Comstar plans to invest $12 million, while JNT will contribute $8 million worth of assets and business. 'As the largest electric vehicle market in the world and a leader in EV technologies, China offers tremendous opportunities for innovation and growth,' said Vivek Vikram Singh, MD & Group CEO, Sona Comstar. He added that the JV operations are expected to commence later this year and will cater to both EV and non-EV customers. Jinnaite operates a foundry with patented technology for complex castings and molds, and supplies components to Chinese auto OEMs as well as customers in North America, Europe, and Japan. The partnership is expected to leverage both companies' strengths to become a key supplier of driveline solutions for EVs in the region. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
3 days ago
- Automotive
- Business Upturn
Sona BLW shares in focus after company forms JV with Jinnaite Machinery to enter Chinese EV market
Sona BLW (Sona Comstar) shares are in the spotlight today after the company said its Board has approved the formation of a new joint venture in China with Jinnaite Machinery Co. Ltd. (JNT). The move was finalized during the board meeting held on Sunday, July 20. This joint venture will focus on manufacturing and supplying driveline systems and components to global automotive OEMs, with an emphasis on the Chinese market. Sona Comstar, or its wholly owned arm, will invest $12 million for a 60% stake, while JNT will bring in assets worth $8 million and hold the remaining 40%. JNT is an established player in advanced casting and foundry work, catering to sectors like automotive, aviation, marine, and railways. The new JV is expected to start operations in the second half of FY25 and forms a crucial part of Sona Comstar's plan to expand across China, Japan, South Korea, and India. This partnership blends Sona's driveline technology with JNT's manufacturing strengths and local presence—setting the company up for long-term growth in a key global market. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Time of India
6 days ago
- Automotive
- Time of India
Sona BLW shares surge 8.5% on potential EV component deal with BYD
Shares of Sona BLW Precision Forgings rose sharply on Thursday following reports that Chinese electric vehicle (EV) giant BYD is in advanced talks with the Indian auto component manufacturer for the supply of EV parts. The stock climbed as much as 8.5 per cent to ₹494 on the BSE during intraday trade, ETMarkets reports. According to a CNBC-TV18 report citing sources familiar with the matter, the two companies have been in discussions for several months. The talks reportedly include plans for Sona BLW to establish a manufacturing facility in China, as part of its broader strategy to expand its global footprint and deepen ties with the world's largest EV maker. If the deal is finalised, it would mark a notable expansion for Sona BLW, which already supplies EV components to global automakers, including Tesla. Volume spike fuels rally, but stock still down YTD The rally in Sona BLW's shares was supported by a significant jump in trading volumes. By 12:10 pm, over 1.26 crore shares had changed hands—nearly five times the company's 10-day average volume. Despite Thursday's gains and a 2 per cent rise in the past month, the stock remains under pressure in 2025. It has fallen nearly 18 per cent year-to-date and over 16 per cent in the past six months. Bearish technicals persist despite short-term rebound On the technical front, Sona BLW's stock is trading below five of its eight key Simple Moving Averages (SMAs), including the 30-day, 50-day, 100-day, 150-day, and 200-day lines. However, it has managed to stay above its shorter-term 5-day, 10-day, and 20-day SMAs. The Relative Strength Index (RSI) stands at 33.1, slightly above the oversold threshold of 30, indicating weak momentum. The Moving Average Convergence Divergence (MACD) remains negative at -13.2 and is below both the signal and centre lines, reinforcing a bearish bias. If talks with BYD progress to a formal agreement, it could provide a strategic boost to Sona BLW's EV business. However, with technical indicators still signalling weakness, the stock's near-term trajectory may remain volatile. Investors will be watching for official confirmation and further clarity on potential manufacturing plans in China.
