Sona Comstar Shares Slide On Boardroom Drama: SEBI RA Prabhat Mittal Flags Bearish Technicals

Sona BLW Precision (Sona Comstar) shares saw selling pressure on Friday amid reports of a boardroom battle at the company. 

At the time of writing, Sona Comstar shares were down nearly 4%. 

Boardroom Drama

Rani Kapur, mother of the late Chairman of Sona Comstar, Sunjay Kapur, has written a letter to the company's board, requesting a postponement of the annual general meeting (AGM), which was set for July 25. According to reports, she has raised objections to the AGM being held during a period of mourning, following her son's sudden and "suspicious" death.

In her letter, she also alleged that she was coerced into signing documents without clarity on their content, in the days after her son’s passing. Sunjay Kapur, who was the Chairman of Sona Comstar, died at 53 from a heart attack in the UK in June while playing polo.

Technical Weakness

SEBI-registered analyst Prabhat Mittal has noted that Sona Comstar was making higher highs and higher lows on its medium-term stock chart, yet underperforming during market rallies.   

He added that the stock was trading below 50,100, and 200-day moving averages (DMAs) and trading near its 20 DMA, which is not a good sign for the stock. Mittal identified ₹500 as a significant resistance for the stock. 

He advised traders to avoid buying this stock at the current price and wait for fresh entries only after a breakout above ₹500. On the downside, he set potential targets at ₹445 and ₹380.

In other news developments, earlier this week, Sona Comstar announced a joint venture with Jinnaite Machinery Co (JNT) to produce driveline systems for automotive manufacturers worldwide. Sona Comstar will invest $12 million, and JNT will contribute $8 million in assets and business in the initial phase.

According to Stocktwits data, retail sentiment shifted to ‘bearish’ on this counter. 

Sona Comstar shares have declined 20% year-to-date (YTD).

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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