Feb 16, 2017 03:50 PM IST | Source: Moneycontrol.com
Buy Bosch; target of Rs 25250: ICICI Direct
ICICI Direct is bullish on Bosch has recommended buy rating on the stock with a target price of Rs 25250 in its research report dated February 13, 2017.
ICICI Direct's research report on Bosch
Bosch’s Q3FY17 revenues came in at Rs 2,672 crore (up 7.7% YoY), vs. estimate of Rs 2,735 crore. Gross revenues of automotive segment declined 4.8% YoY to Rs 2,366 crore while revenue from the nonautomotive segment posted growth of 22.4% YoY to Rs 530 crore.
On financials, we anticipate a CAGR of 11%, 16% in revenues, earnings, respectively, in FY16-19E (with sale of its starter motor & generator division accounting for <10% of revenue) with decent return ratios. Thus, we maintain our BUY recommendation on the stock, valuing it at 39x its FY19E EPS with a target of Rs 25,250/share. We remain positive on the long term prospects of the ancillary giant.
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