EV growth, mkt share to forge gains for auto component maker Sona Comstar

Margins could improve given softening commodity prices

The stock of auto component maker Sona BLW Precision Forgings (Sona) has been under pressure since the start of the financial year, shedding 16.4 per cent. In comparison, the BSE Auto index has significantly outperformed the stock, gaining about 20 per cent over this period. While the correction was on account of macro concerns in key markets such as Europe and the US and margin pressures, some brokerages have turned positive on the stock given its presence in fast-growing auto segments, lower commodity prices and valuation comfort.

Some of the pressures on the sales front, especially in the internal combustion