Sona BLW Precision Forgings Limited Fundamental Analysis
Sona BLW Precision Forgings Limited Fundamental Analysis
Sona BLW Precision Forgings Limited (SONACOMS.NS) shows weak financial fundamentals with a PE ratio of 60.13, profit margin of 14.39%, and ROE of 11.21%. The company generates $44.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SONACOMS.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSONACOMS.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakSONACOMS.NS trades at a premium to fair value.
Growth Score
ModerateSONACOMS.NS shows steady but slowing expansion.
Financial Health Score
ExcellentSONACOMS.NS maintains a strong and stable balance sheet.
Profitability Score
WeakSONACOMS.NS struggles to sustain strong margins.
Key Financial Metrics
Is SONACOMS.NS Expensive or Cheap?
P/E Ratio
SONACOMS.NS trades at 60.13 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SONACOMS.NS's PEG of 14.90 indicates potential overvaluation.
Price to Book
The market values Sona BLW Precision Forgings Limited at 6.44 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.74 times EBITDA. This signals the market has high growth expectations.
How Well Does SONACOMS.NS Make Money?
Net Profit Margin
For every $100 in sales, Sona BLW Precision Forgings Limited keeps $14.39 as profit after all expenses.
Operating Margin
Core operations generate 23.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.21 in profit for every $100 of shareholder equity.
ROA
Sona BLW Precision Forgings Limited generates $8.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sona BLW Precision Forgings Limited generates limited operating cash flow of $3.40B, signaling weaker underlying cash strength.
Free Cash Flow
Sona BLW Precision Forgings Limited generates weak or negative free cash flow of $322.12M, restricting financial flexibility.
FCF Per Share
Each share generates $0.52 in free cash annually.
FCF Yield
SONACOMS.NS converts 0.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
14.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How SONACOMS.NS Stacks Against Its Sector Peers
| Metric | SONACOMS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.13 | 25.75 | Worse (Expensive) |
| ROE | 11.21% | 931.00% | Weak |
| Net Margin | 14.39% | -3667.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 3.40 | 2.51 | Strong Liquidity |
| ROA | 8.58% | 196.00% | Weak |
SONACOMS.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sona BLW Precision Forgings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary