Neutral Bosch; target of Rs 35967: Motilal Oswal

Motilal Oswal's research report on Bosch

Bosch (BOS)’s 1QFY26 PAT at INR6.7b was well above our estimate of INR4.9b, fueled by better-than-expected operational performance and higher other income. The key highlight of 1Q was a 75% YoY growth in the 2W segment.Given the better-than-expected operational performance in 1Q, we raise our FY26/FY27 estimates by 13%/12%. While BOS continues to work toward the localization of new technologies, given the long gestation of projects, its margin remains under pressure with no visibility of material improvement, at least in the near term. Following the recent run-up, the stock at ~50x FY26E/42.4x FY27E EPS appears fairly valued. We reiterate our Neutral rating with a TP of INR35,967 (based on ~36x Jun’27E EPS).

Outlook

We reiterate our Neutral rating with a TP of INR35,967 (based on ~36x Jun’27E EPS).