Shares of Sona BLW Precision Forgings rose 8 per cent to hit a day’s high of Rs 456 in early trade on BSE on Tuesday after the company announced the acquisition of a 54 per cent stake in Serbia’s NOVELIC, a provider of mmWave radar sensors, perception solutions, and full-stack embedded systems.
The company has agreed to acquire at least 54 per cent of the share capital and voting rights of NOVELIC, subject to closing adjustments, Sona BLW said.
During more than ten years of market presence, NOVELIC has built an extensive portfolio of mmWave radar solutions and perception solutions that enable off-the-shelf and custom products focused on autonomous driving and automation, it added.
“NOVELIC also does full cycle development of electronics and software services based on its hardware-in-loop (HIL) systems, control systems, ECU hardware/software platform, annotation tools and other in-house platforms,” the company said.
It added that the transaction scope also includes the acquisition of Beograd-Zvezdara (Nirsen), an entity owned by the founders of NOVELIC, engaged in the chip designing business.
With NOVELIC’s capabilities in sensors and perception solutions, Sona Comstar intends to grow in the area of autonomous and connected vehicle technologies.
Angel One believes that Sona BLW has a strong market share ranging from 55-90% for differential gears for PV, CV, and tractor OEMs in India. The company’s combined motor and driveline capabilities have enabled them to gain market share across its products, especially for products related to EV/BEV.
Given the traction in the BEV/Hybrid Vehicle space, we believe that Sona Comstar will continue to command a higher multiple which is justified by 49% earnings CAGR over FY21-24E, it said.