Accumulate Bosch; target of Rs 5188: Angel Sec

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Angel Securities has recommended accumulate rating on Bosch with a target of Rs 5188, in its March 05, 2010 research report.

"Bosch's medium-term prospects are derived largely from the demand arising in the commercial vehicle (CV) and Tractor Segments, which is estimated to grow at annual rate of around 12-13% and 5-6% respectively, over the next couple of years. Further, greater visibility in newer growth opportunities are emerging for the company following its investments in new and innovative technologies like CRS and Gasoline Systems. We estimate the company to clock EPS of Rs 227.3 and Rs 259.4 for CY2010E and CY2011E respectively, owing to the overall pick up in Auto demand."

"At the CMP, the stock is quoting at 18.4x CY2010E Earnings. At our Target multiple of 20x (based on its three-year historical average multiple) CY2011E EPS, our Fair Value for the stock works out to Rs 5,188 and we  maintain an Accumulate on the stock," says Angel Securities research report.

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