1. At a Glance
Sona BLW—also known as Sona Comstar—isn’t just another auto parts supplier. It’s the brainiac kid in class building traction motors, bevel gears, and eVTOL powertrains while others are still stuck with spark plugs. With a ₹24,200 Cr EV order book, 28% OPM, and nearly zero debt, this midcap may just be India’s answer to Bosch, minus the grey hair.
2. Introduction with Hook
Picture this: a company with more gears than an F1 garage, an order book juicier than a mango in May, and profit margins tighter than Virat Kohli’s cover drives.
- Market share? 8.1% in differential gears, **4.2% in starter motors—**global, not desi.
- EV order book? ₹24,200 Cr
- New verticals? Railways, drones, eVTOLs, and whisper it… autonomous tech with IIT Hyderabad.
Sona Comstar doesn’t just make parts. It makes mission-critical components your Tesla can’t start without.
3. Business Model (WTF Do They Even Do?)
Sona Comstar is a Tier-1 mobility tech supplier to global OEMs, both ICE and EV.
Core Products:
- Differential assemblies, gears
- Traction motors (EVs), BSG systems
- Starter motors
- eAxles, eDrive solutions
- Software + Hardware = Full-stack drivetrain tech
Clients? Think top 10 global auto brands. Global revenue mix? ~75% exports.
Bonus: they even supply components for premium e-bikes and hybrid SUVs.
This ain’t your local crankshaft vendor.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Revenue | ₹3,546 Cr |
| EBITDA | ₹967 Cr |
| Net Profit | ₹600 Cr |
| EPS | ₹9.67 |
| ROCE | 17.8% |
| ROE | 14.3% |
| OPM | 27.2% |
- 5Y Sales CAGR: 28%
- 5Y PAT CAGR: 31%
- Clean, lean, margin machine.
5. Valuation
Current Price = ₹455
Stock P/E = 48.4
Pricey? Maybe. But let’s EV-aluate.
Fair Value Estimate:
- Base Case (20x FY26E EPS of ₹12): ₹240
- Growth Case (40x EPS ₹15): ₹600
- Aggressive EV Boom Case (PEG ~1): ₹700+
At ₹455, it’s not cheap. But neither is precision tech powering Rivians and e-buses in Europe.
6. What’s Cooking – News, Triggers, Drama
- Q4 FY25 Net Profit up 10%: ₹164 Cr
- ₹1,600 Cr acquisition of Escorts Kubota Railway Division
- eVTOL & Drone MoU signed: Seriously, flying cars next?
- New Manesar plant operational (Oct 2024)
- Raised ₹2,400 Cr via QIP = cash war chest
- Chairman Sunjay Kapur passed away (June 2025)—leadership transition underway
- Big opportunity in B2B + EV aftermarkets
Drama? Minimal. Execution? Ruthless.
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 622 |
| Reserves | 4,873 |
| Borrowings | 202 |
| Other Liabilities | 840 |
| Total Liabilities | 6,537 |
| Fixed Assets + CWIP | 2,546 |
| Investments | 864 |
| Other Assets | 3,126 |
Key Point:
- Net Debt: Almost zero
- Cash reserves growing
- Strategic capex into new tech and geographies
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹533 Cr | -₹562 Cr | ₹19 Cr | -₹10 Cr |
| FY24 | ₹693 Cr | -₹471 Cr | -₹175 Cr | ₹47 Cr |
| FY25 | ₹775 Cr | -₹1,762 Cr | ₹1,944 Cr | ₹957 Cr |
- Operating cash strong
- Capex-heavy in FY25 = growth investments
- Raised QIP to fund expansion, not working capital gap
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 17.8% |
| ROE | 14.3% |
| OPM | 27.2% |
| Debt/Equity | ~0.04x |
| CCC (days) | 78 |
Verdict:
- Efficient ops
- Fat margins
- Healthy returns
Sona’s drivetrain spins smoother than a Tesla’s torque curve.
10. P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Sales | ₹3,546 Cr |
| EBITDA | ₹967 Cr |
| Net Profit | ₹600 Cr |
| EPS | ₹9.67 |
| Dividend Payout | 33% |
Solid profitability, solid payout. Investors aren’t crying about ROE here.
11. Peer Comparison
| Company | ROCE | OPM | P/E | Market Cap |
|---|---|---|---|---|
| Sona BLW | 17.8% | 27.2% | 48.4 | ₹28,269 Cr |
| Bosch | 21.1% | 12.8% | 56.1 | ₹1.13L Cr |
| Uno Minda | 18.9% | 11.2% | 67.7 | ₹63.5K Cr |
| Schaeffler | 25.7% | 18.4% | 65.3 | ₹66.2K Cr |
| Bharat Forge | 13.1% | 17.8% | 58.7 | ₹59.2K Cr |
Sona Comstar is smaller but higher margin and far more EV-focused. Market still sees it as the future, not legacy.
12. Miscellaneous – Shareholding, Promoters
| Stakeholder | Jun 2022 | Jun 2024 | Mar 2025 |
|---|---|---|---|
| Promoters | 67.2% | 29.7% | 28.0% |
| FIIs | 8.8% | 32.0% | 29.9% |
| DIIs | 16.1% | 29.5% | 34.4% |
| Public | 7.9% | 8.8% | 7.6% |
- Promoters offloaded aggressively, now below 30%
- Institutions scooped it all up—rare alignment between DIIs and FIIs
- Over 4 lakh retail shareholders riding the EV hype
13. EduInvesting Verdict™
Sona Comstar is the rare case of “Made in India” auto tech going global and going electric. It’s riding the EV megatrend, landing global contracts, and innovating like a startup with capital discipline of an MNC.
The downside? Valuation is full throttle already.
The upside? It’s already in the drivetrain of tomorrow’s vehicles—from scooters to flying taxis.
Hold your gearshift. The next leg could be autopilot.
Metadata
– Written by EduBot | 15 July 2025
– Tags: Sona Comstar, EV, Auto Tech, Precision Forgings, eDrive, Differential, QIP, eVTOL, Drone, Railway Systems, Capex, Global OEMs
