Does anyone have an idea who is the customer in EV segment with 75% concentration? And also about other significant customers?
It is the Tesla, since it controls huge market in EV
But significant revenue for the company comes from making Traction motors which it makes for EV 2 wheelers. So how can Tesla be that customer? My previous guess was either TVS or Aether.
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Traction motor is just 2.5% of the total revenues. Tesla is approx. third largest customer for the company.
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Yes, Tesla is not making 2 wheeler.
Please share name of all customers of Sonabmw with segments
Why promoters are selling their stake?
Company reported an investment of USD 1.6 million to its Mexican subsidiary (Related Party Transaction) for setting up a plant, likely to be operational in the calendar year2024.
On the Question of estimation of orderbook : Generally during the RFI/RFQ phase the lifetime quantity is discussed. From my experience of working at a TIER-1 , we used to ask the OEMs for the Quantity over the lifetime.
If the Quantity was less ( in our case < 100000), we would usually ask them to take off the shelf product (if that was a part of the offering) Additional costs were put against Software modification , hardware configuration etc.
If the Quantity goes above 1 million, the price would get negotiated and we would aggressively bid for the project. The contract also had compensation terms in case the quantity was not fulfilled. Sometimes we would track this on an annual basis.
The development cycle of a 4 W EV is approximately 3-4 years ( and it is getting shorter ) RFI /RFQ are sent within 6 months and suppliers are finalised within 1.5 years.
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will tesla weak results affect sona ?
My 2 cents on likely reasons why Sona Comstar’s share price is under pressure
- Very high interest rate in U.S naturally discourages new buying from potential customer which means less cars selling and hence less cars being manufactured for now. Directly impacts exports of Sona Comstar to US companies. This includes both ICE and EV
- Recent labour strike in US for 3 main car manufacturers further impacts production and hence sourcing. Directly impacts exports of Sona Comstar exports to US
- Softer volume growth in Europe. More so of locally manufactured and sold EVs (VW and other European manufacturers). Chinese EV manufacturers have flooded EV with lower cost and compelling value proposition (likely due to subsidy from China govt). Europe has already announced an investigation in this as domestic manufacturers are under pressure. So Sona Comstar exports to Europe will also be under pressure
Pt. 1 and 2 is temporary blip as sooner or later interest rates will come down, labour strikes will be resolved. Pt. 3 might take longer due to multiple factors including future potential decision of EU to impose duties on cars from China
Hope this gives some context on why the share price is under pressure. However, longer term it still holds a lot of potential given the product portfolio it has and recent foray in to ADAS products because of acquisition
Good luck researching more on the company!
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Nice analysis. The US interest rate has been rising for more than 1 year and yet the company has shown almost consistent revenue and profit growth. Please see the figure above.
In fact, the stock price has been rising since April reflecting the growth above.
The labor strike is a very recent event in September 2023 which perhaps explains the slight dip in the recent quarter and also compounded by the flooding of the market by Chinese EV as you have mentioned.
there will never be perfect correlation in such metrics. There will be lag with which impact shows up. Market is a giant discounting machine…moment it senses that growth of Sona Comstar may not be that great in near term, it will immediately discount it. Whether market was wrong or right we will know only with the benefit of hindsight!
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But Sona Comstar also gets business from China
But any study or research about
- Recent change of promotor and also about consistent decline of holding ?
- Promotor and management vision for the company?
Tomorrow its Q2 numbers will be announced. Any idea what the market expectation was about its revenue/profit numbers?
Q2FY24 Results: Company reported its highest-ever revenue, EBITDA, and net profit,
EV Business Highlights:
Concall link:
Disclosure: Invested
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Nice to hear that. I wrote a piece on SONACOMS just a while back: Sona Comstar Poised for Growth Amidst India's Electric Vehicle Revolution
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The concept of CausalityArrow look interesting. I have been trying to find something similar for some time now without success. Right now we news analysis is a jumbled up mixture of google alerts, screener notifications, manually search on other niche websites (for e.g. for Solar or Wind energy) etc.
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