Sharekhan's research report on Bosch
The stock trades below its historical average at a P/E of 26.2x and EV/EBITDA of 17.8x its FY24E estimates. Bosch’s Q1FY23 results were broadly in-line with expectations. Revenue, EBITDA and PAT continue to perform well in Q1, growing at 45.1% y-o-y, 44.8% y-o-y and 28.4% y-o-y respectively. Support from the parent company and investment in R&D would be key drivers to tap emerging opportunities in EVs and connected vehicles in India. We expect Bosch’s earnings to clock a 26.4% CAGR during FY22-FY24E, driven by a 20% revenue CAGR and a 240-bps rise in EBITDA margin expansion to 14.8% in FY24E from 12.4% in FY22.
We retain Buy on Bosch Limited (Bosch) with a revised PT of Rs.19,795, led by a robust demand outlook in the automotive business across segments, access to robust e-mobility technology, and continued focus on improving content per vehicle.
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