Rising Bet On Robotics: Here’s Why Sona BLW Shares Rose 5% Today

Sona BLW Precision Forgings (Sona Comstar) extended gains into a second session, surging 4.4% to ₹448.50.

On Friday, the company announced the signing of a memorandum of understanding (MOU) with NEURA Robotics GmbH in Metzingen, Germany, to jointly develop advanced technologies, components, and sub-assemblies, and industrialize robots and humanoids in India and other agreed markets.

Sona Comstar will bring its capabilities in electric powertrains, including motors, inverters, and gearboxes, to the partnership. Through the partnership, Sona Comstar and NEURA Robotics will look to offer high-end automation solutions under the ‘Made in India’ banner.

“This collaboration aligns with our vision to expand beyond the automotive domain, into a broader mobility space, supporting the future of intelligent manufacturing and service industries. By combining Sona Comstar’s engineering and manufacturing expertise with NEURA’s pioneering cognitive robotics technologies, we are well-positioned to deliver world-class solutions for the global market,” said Vivek Vikram Singh, MD & Group CEO of Sona Comstar.

In Q1, Sona Comstar reported a 5% decline in revenue of ₹8.51 billion, driven largely by a slowdown in its Battery Electric Vehicle (BEV) segment, which accounted for 28% of total revenue.

EBITDA declined 19% to ₹2.03 billion, with an EBITDA margin of 23.8%. Net profit declined 12% to ₹1.25 billion.

What is the Retail Sentiment?

Despite the recent gains, retail sentiment for the stock on Stocktwits remains ‘bearish’. It was ‘bullish’ a week back. The news also led to an increase in market chatter on the platform.

Year-to-date, the company has faced significant selling pressure, resulting in a 26% decline.

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