Novelic buy adds to Sona BLW's growth opportunities; stock up 6% in one day

Brokerages are neutral on the stock given near term challenges and valuations

The stock of Sona BLW Precision Forgings (Sona BLW) was up 5.92 per cent in trade on Tuesday after the acquisition of a 54 per cent stake in Serbia-based Novelic. The radar sensor technology company, with a focus on in-cabin sensing technology, was purchased by Sona BLW for an enterprise value of €64.5 million or about Rs 566 crore.

Novelic has a topline of €9.3 million (about Rs 82 crore) and has been growing its revenues by 53 per cent annually over the last ten years; it is estimated to have ended the 2022 calendar year (CY22) with a net