Sona BLW Precision Stock Price Analysis and Quick Research Report. Is Sona BLW Precision an attractive stock to invest in?

The Indian Auto Industry comes in the top 5 largest auto industries of the world. India is also a prominent auto exporter and has strong export growth expectations for the near future. The support from the government is providing the auto companies with a boost needed in their development. But will it sustain?
We can look into more details and dig a little deeper into the analysis of the stock of this sector. Let’s look at how Sona BLW Precision is performing and if it is the right time to buy the stock of Sona BLW Precision with detailed analysis.

• The mainstream of revenue for Auto Sector is their sales, Sona BLW Precision has reported decent sales growth of 17.1952 % and in the latest quarter sales was Rs 770.076 Cr. To judge whether the company’s inventory is being sold or not and the sales picture is true, inventory turnover ratio plays a major role, which is 9.977 times for Sona BLW Precision . It is managing its inventory poorly .
   
• Sona BLW Precision reported Profit growth of 24.837 % over the year, where the latest year profit is Rs 484.48 Cr compared to the previous year of Rs 388.09 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
   
• The operating profit of Sona BLW Precision in the latest quarter is Rs 214.804 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
   
• Sona BLW Precision has a healthy ROE of 20.171 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. Sona BLW Precision has a low Debt to Equity ratio of 0.0911.
   
• Sona BLW Precision pays a dividend of 3.06 Rs per share. It tells us that a company likes to share profits with its shareholders. The dividend yield is low at 0.6378 %.
   
• The share of promoter in Sona BLW Precision is low at 28.02 %, where the pledging is 0 %.
   
• What the market is willing to pay for the company for its earnings can be determined by PE multiple. Current PE of Sona BLW Precision is 53.8234663234663 compared to the 5 year average PE of 51.9958885806846 .
   
• Share Price: - The current share price of Sona BLW Precision is Rs 501.85. One can use valuation calculators of ticker to know if Sona BLW Precision share price is undervalued or overvalued.