$SONACOMS Rallies on Strong Q1, but EV Transition and Rich Valuations Keep Brokerages Cautious

$SONACOMS reported a robust Q1FY27 with net profit rising 44.7% YoY and revenue surging 52.4%, driven by strong growth in its EV business and healthy operational execution. While the results were broadly in line with expectations, brokerages remain cautious due to margin pressure from an adverse product mix, premium valuations and uncertainties surrounding the pace of global EV adoption. Despite the company's strong order book, strategic partnership with Denso and expansion into robotics and physical AI, analysts believe much of the near-term optimism is already reflected in the stock price.