Hi Community,
Would like to share a though and seek your feedback!
Sona BLW is a R&D driven organization and playing in the EV adoption theme. EV adoption is inevitable, now or later cars will transition to EV, management also said that by the end of 2035 most of the automobiles are going to be EV.
I have the following thesis points:
- All the products produced by Sona BLW, especially motor and allied components are relevant irrespective of the power source. Even if the furture is Hydrogen, you still need motors.
- Motors are also be used in robotics and drones, and sona can either develop or acquire a company that develop such niche motors. Sona BLW already develop motors for Bots.
- This company has one of the best management team in the sector, maybe that’s why Singapore government fund has 8% stake in the company. Generally, such long only fund doesn’t take big stake in any company just like that.
- If company does a strategic acquisition, it can be one of the diversified player to cater the whole ecosystem of EV market.
Company is trading at rich valuation, it does justified as there are not many companies who has such a unique business model.
What do you think of the company and do you think Sona BLW is long term portfolio stock, that you can keep in your portfolio for the next 10-15years? Could it be a silent wealth creator?
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