Buy Bosch: Target Of Rs 15,970: Sharekhan
Sharekhan is bullish on Bosch recommended buy rating on the stock with a target price of Rs 15,970 in its research report dated November 06, 2020.
Nov 11, 2020 / 11:29 AM IST
Sharekhan's research repor on Bosch
Bosch’s operating performance for Q2FY2021 was below estimates on account of lower margins. Automotive demand is improving with Bosch expected to reap benefits of increased content per vehicle. Bosch topline grew 7% yoy in Q2; with ongoing festive season, Bosch expects double-digit growth in Q3. We expect strong recovery in FY22 driven by normalization of economic activities. Margins are expected to improve going ahead, driven by increased localisation, transformational and restructuring projects, and benefits of operating leverage due to improved demand.
Hence, we recommend Buy on the stock with a PT of Rs. 15,970. P/E of 20.4x FY23 earnings is lower than long term historical average of 30x.
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