Sona BLW Precision Forgings shares fall almost 8% after Chairman Sunjay Kapur's passing

Shares of Sona BLW Precision Forgings Ltd (Sona Comstar) plunged nearly 8 percent in intra-day trade on Friday after the company announced the demise of its Chairman and Non-Executive Director, Sunjay Kapur. The stock touched a low of ₹500.45 during the session, reacting to the sudden development that cast a temporary shadow on investor sentiment.

In a filing to the stock exchanges, the company confirmed that Kapur passed away in England, United Kingdom. “Sunjay was a visionary leader and a compassionate person whose guidance shaped Sona Comstar’s success. His values and dedication to excellence have left a lasting legacy,” the company said. It also assured stakeholders that operations, growth prospects, and leadership continuity remain intact.

The immediate drop in share price highlights market sensitivity to leadership transitions, especially in innovation-led companies like Sona Comstar that are closely aligned with the evolving electric vehicle (EV) sector. Although the company affirmed that its operations and long-term outlook remain unchanged, investor caution prevailed in the short term.

Sona Comstar further emphasized its commitment to advancing Kapur’s legacy and vision. “We are committed to upholding his legacy by advancing our mission and the values he instilled in Sona Comstar,” the company stated in its regulatory disclosure.

Sunjay Kapur was a key figure not only at Sona Comstar but also across multiple boards. He held directorship positions in firms such as Jindal Steel & Power Limited, Osborne Agri Company Private Limited (UK), and Aureus Investment Private Limited, among others. His influence extended beyond corporate circles; he was also previously married to Bollywood actress Karisma Kapoor.

Brokerage view

Adding to the pressure on the stock, foreign brokerage Bernstein downgraded Sona Comstar to ‘Market Perform’ and assigned a price target of ₹540. The brokerage cited several near-term global risks that could affect the company’s performance. These include escalating tensions between former US President Donald Trump and Tesla CEO Elon Musk, legislative efforts in the US to roll back EV subsidies, and India-US trade headwinds.

Bernstein highlighted that over 75 percent of Sona Comstar’s order book is linked to the EV segment, leaving the firm highly exposed to policy and geopolitical changes. With growing competition from Chinese OEMs and uncertainty in the US EV landscape, the brokerage warned that earnings could be under pressure.

It also noted that the recent rally in the stock may limit further upside in the near term. After gaining 13 percent in May and 4 percent in April, the stock has declined around 8 percent in June so far.

Stock Performance

On Friday, the auto ancillary stock hit a low of ₹500.45, down 7.7 percent. It now trades nearly 35 percent below its 52-week high of ₹767.80, recorded in September 2024. Its 52-week low stands at ₹379.80, hit in April 2025.

The scrip has fallen 23 percent over the past 12 months. Before the short-lived recovery in April and May, the stock remained in the red for six straight months between October 2024 and March 2025.

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