Shares of Bosch India Limited traded over a percent lower to Rs 31,100 in early trade on May 28 after UBS maintained its 'sell' call on the counter citing expensive valuations. The development comes a day after the stock scaled a fresh 52-week high.
The international brokerage has, however, hiked the target price to Rs 20,000. This is a downside of a massive 36 percent from the current levels. Analysts' previous target price was Rs 18,000.
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The broking firm said that even as the company continues to guide for margin improvement, there are no concrete plans for guidance and localization. "Premium valuations for subpar performance and prospects," UBS stated in a recent report on the company.
The company reported a 42 percent year-on-year increase in net profit, reaching Rs 564.4 crore, driven by increased demand for passenger cars and consumer goods. This compares to a net profit of Rs 398.1 crore in the same period last year.
Revenue from operations rose by 4.2 percent year-on-year to Rs 4,233.4 crore, up from Rs 4,063.4 crore in Q4FY23. The total product revenue for its Mobility and Beyond Mobility business sectors increased by 3 percent and 14 percent, respectively, largely due to continued expansion in the consumer goods segment.
For the entire financial year, Bosch's net profit surged nearly 75 percent to Rs 2,491.3 crore, compared to Rs 1,425.5 crore the previous year. Revenue increased by 12 percent, reaching Rs 16,727.1 crore by the end of FY24, up from Rs 14,929.3 crore in FY23.
At about 9:40 am on Tuesday, Bosch's shares on NSE were trading at Rs 31,148 apiece, down 1.3 percent from the previous close. Bosch's shares have rallied a massive 42 percent since the start of the year.
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