Sona BLW Precision shares rise 4% after Blackstone sells entire stake; here’s why

Shares of Sona BLW Precision were in focus today after Blackstone sold its entire 20.5% stake in the firm via a block deal in the previous session. The transaction is worth about Rs 4,916 crore. After the block deal, brokerage CLSA maintained its buy rating on the stock with a new target price of Rs 529 against the earlier Rs 566. CLSA forecasted a revenue CAGR of 27% over FY22-25 which it termed as one of the strongest rates of growth in the Indian auto component universe.

“Blackstone exit has not changed our thesis about the growth of the firm”, said the foreign brokerage.

This led to positive sentiment on the Sona BLW counter with the stock gaining after 4 days of consecutive fall. Sona BLW Precision stock opened with a gain of 2.29% at Rs 415.10 today against the previous close of Rs 405.80 on BSE.

The stock touched an intraday high of Rs 422.95, rising 4.23% on BSE.

However, the Sona BLW Precision Forgings shares have lost 32.44% in a year and fallen 1.36% since the beginning of this year.

Total 0.42 lakh shares of the firm changed hands amounting to a turnover of Rs 1.75 crore on BSE today. Market cap of the firm rose to Rs 24,279 crore. The share hit an 52 week high of Rs 706.75 on March 21, 2022 and a 52 week low of Rs 397.35 on December 26, 2022.

In terms of technicals, the relative strength index (RSI) of Sona BLW Precision stock stands at 30.8, signaling it's neither trading in the overbought nor in the oversold zone. The stock has a beta of 0.9, indicating low volatility in a year. Sona BLW Precision shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Sona BLW Precision Forgings is an automotive systems and components manufacturer, offering differential assemblies, gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors, and motor control units.

Also read: Adani Enterprises, Adani Ports, Adani Power, Adani Green in focus as govt issues statement on Adani-Hindenburg crisis

Also read: Stocks in news: Tata Chemicals, Sona BLW Precision, Lupin, GAIL, Apollo Pipes and more