Sona BLW shares jump 10%, the most in two years after Q2 results; Analysts do not see major upside

What happened

Sona BLW shares jumped nearly 10% intraday on October 27 after September-quarter results. Revenue grew 35% year on year, battery electric vehicle revenue rose 129%, and net profit increased 29.9% to ₹223.4 crore.

Confirmed

Global impact / market context

Fast battery electric vehicle revenue growth shows Sona BLW is winning more electric-car parts business, which supports future sales. But analysts disagree on the stock, and Kotak calls it expensive, so investors face a debate over whether growth already justifies the price.

Analyst inference

The nearly 10% jump, the biggest since October 2024, signals strong short-term investor reaction to earnings. Yet wide target gaps, from ₹600 to ₹960, show no agreement on value. Margin pressure from higher material costs adds caution even as electric vehicle revenue outpaces the total business.

Analyst inference

What to watch

1. Citi's ₹960 target implies 23% upside from Monday's close of ₹781.90, while JPMorgan's ₹600 target points to over 23% downside, showing sharply divided analyst views. Confirmed
2. Watch whether Sona BLW can keep battery electric vehicle revenue near 51% of automotive product revenue, since that share supports the growth story investors are paying for. Proposed
3. Watch material costs and margins: margins narrowed on higher material cost. If that pressure continues, profit growth may lag revenue growth and test the high valuation Kotak flags. Analyst inference

Evidence

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