Sona BLW Precision Forgings share rose 10% on Thursday morning.

What Happened: Sona BLW’s September quarterly results reported a 16% year-on-year net profit growth to ₹143.57 crore. The revenue gained 17% to ₹922.18 crore. The battery electric vehicles segment contributed 36% to the revenue.

The company's net order book reached ₹23,100 crore in the September quarter. 

Sona BLW also signed a pact with Escorts Kubota to buy its railway equipment business for ₹1,600 crore. The railway equipment division makes brakes and suspension systems for rolling stocks. The business segment reported a revenue of ₹950 crore and EBIT of ₹179 crore in FY24.

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Brokerage Views: JPMorgan gave a neutral call while raising the target price to ₹640. The brokerage said Q2 revenue and EBITDA missed estimates by 3% and 10%. The order book strength drove revenue traction in EV, but non-EV revenue growth was muted, the research firm added. JPMorgan cut FY25-27 earnings per share forecast by 7%-10% to account for weaker growth.

CLSA upgraded the stock to "outperform" and increased its target price to ₹712. The company posted in-line operating performance, the brokerage noted. The company acquiring Escorts' railway business will drive profitable growth, the research firm added. CLSA said the potential slowdown in core business is pushing for inorganic growth.

Price Action: Shares of Sona BLW rose 10.20% to intraday high of ₹709.85 on Thursday morning. 

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