Sona Comstar shares continue to dip, is boardroom battle reason for decline?
Sona BLW Precision Forgings Limited (Sona Comstar) has seen its stock price dwindling over a period, declining by over 36 per cent from its 52-week high of Rs 768.65.
New Delhi: Sona BLW Precision Forgings Limited (Sona Comstar) has seen its stock price dwindling over a period, declining by over 36 per cent from its 52-week high of Rs 768.65.
On Friday, the shares of the Haryana-based company were trading at Rs 486.35, down by Rs 4.45 or 0.91 per cent during intra-day trade.
Over the past five days, the stock has declined by Rs 9.75 or 1.97 per cent. However, in the last one month, it has gained Rs 5.40 or 1.12 per cent.
Looking at a longer timeframe, the shares have dropped by Rs 26.30 or 5.13 per cent over the past six months. On a year-to-date (YTD) basis, the stock is down by Rs 105.05 or 17.76 per cent.
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Over the last year, it has fallen significantly, losing Rs 211.30 or 30.28 per cent.
The shares are currently trading at Rs 282 or 36.68 per cent below their 52-week high of Rs 768.65.
Meanwhile, the boardroom battle has apparently begun at the company after the sudden demise of Sunjay Kapur at age 53, who was chairman and non-executive director of leading auto components manufacturer Sona BLW Precision Forgings Ltd (Sona Comstar). He passed away after suffering a heart attack in England. The incident occurred while he was playing polo.
After his untimely death, there is no one left on the Board of the company from the Kapur family, which founded it in 1995 as Sona Okegawa Precision Forgings Ltd — a JV with Mitsubishi Metal Corporation Limited. In 1999, it launched a manufacturing plant in Chennai. In 2013, the company was renamed Sona BLW Precision Forgings Limited.
Rani Kapur, the former chairperson of the Company and the wife of late Dr Surinder Kapur, the Founder of Sona Comstar and the Sona Group, is a majority shareholder of the Sona Group, including the company.
Sona Group’s total turnover for FY24 was approximately Rs 3,184.8 crore. In US dollars, the turnover would be around $383.7 million.
As for the expected valuation, Sona Comstar’s market capitalisation alone is around Rs 2.94 lakh crore. However, this figure may fluctuate based on market performance. In US dollars, the valuation would be approximately $3.54 billion.
Sona BLW Precision Forgings Limited (Sona Comstar) was scheduled to hold its 29th Annual General Meeting (AGM) on Friday. It was yet to be seen if Rani Kapur demands her place back in the company as the chairperson after the death of her son, or the company AGM decides to bring in a member of the Kapur family on board.
