Motilal Oswal Maintains Neutral Rating on Bosch with Target Price of INR 29,540 Amid Weak 1QFY25 Performance

Stock target Stock target for Bosch

Posted by admin on 2024-11-29 18:00:35 |

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Motilal Oswal has maintained a Neutral rating on Bosch (BOS)with a target price of INR 29,540, following a weak 1QFY25 performance. Thecompany reported EBITDA and PAT of INR 5.2 billion and INR 4.7 billion,respectively, which were lower than expected (INR 5.99 billion and INR 5.4billion). The underperformance was attributed to a higher import mix andadditional expenses, including warranty provisions. Bosch is focusing onincreasing localization, but imports are expected to rise in the near term dueto the transition to common rail systems.

Given the subdued demand in the underlying industries andhigher operating expenses, Motilal Oswal has revised its FY25E/FY26E EPSestimates down by approximately 8% and 7%, respectively. With the stock tradingat around 44x/37.2x FY25E/FY26E EPS, it is considered fairly valued. Therefore,Motilal Oswal continues to maintain its Neutral stance on the stock with atarget price based on 32x June 2026 EPS.

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