Sona BLW Precisions (SonaComstar)

31 Eki 2023

SONACOMS
A great proxy player to Automobile Industry with great fundamentals and it was backed by one of the biggest fund house in the world Blackstone.
Stock was in sharp impulse wave which is wave 1. After impulse stock was in running triple three correction which is wave 2. Running triple three correction can be difficult to identify but give very good opportunity to hop into main trend which is in this case is bullish trend.
Basic rule is wave 3 is most of the time is extended one. So, After Running triple three correction I think stock is in extended wave 3. My target for wave 3 is 995.

7 Kas 2023

İşlem aktif

22 Ara 2023

Not

Qualitative Analysis :-
Few months back I have given bullish view on SONA COMSTAR. Now my view is little changed because fair valuation compare to it's peers and proxy players. Right now I think SONACOMSTAR is way overvalued because it's proxy like HEROMOTOCO, TVS and other automobile and auto-ancillary industry is undervalued. For example, right now the market capital of HEROMOTOCO is 78,650 cr. & market capital of SONACOMSTAR is 33,850 cr. as of 22-12-2023. So I think market capital of HEROMOTOCO must have to be above 1,00,000 cr. only after that SONACOMSTAR will be in fair valuation.

In short if you invest equal amount in HEROMOTOCO and SONACOMSTAR. HEROMOTOCO will surely outperform SONACOMSTAR.

SONACOMSTAR will not go below 400/- but it will consolidate.