Neutral Bosch; target of Rs 17,850 : Motilal Oswal

neutral

Motilal Oswal's research report on Bosch

Bosch (BOS) 4QFY23 revenue at INR40.7b was above our est. of INR38.1b. However, higher trading content in the mix and RM pressure resulted in lower-than-estimated EBITDA of INR5.2b (v/s est. INR5.5b). We expect BOS to continue to outperform the underlying industry led by content enhancement but doesn’t see scope of margins recovering over 15% over next 2-3 years.

Outlook

We largely retain our EPS for FY24E/25E as we believe growth in auto demand and content increase should be offset by lower margin. Reiterate Neutral with a TP of INR17,850 (based on ~25x Mar’25E EPS).

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Bosch - 12 -05 - 2023 -moti