Motilal Oswal's research report on Bosch
Bosch (BOS) 1QFY24 revenues surprised, led by autos, but margins were below est. due to lower gross margins and higher ‘other expenses’. We expect BOS to continue outperforming the underlying industry, primarily led by content enhancement. However, we do not foresee margins recovering above 15% over the next 2-3 years due to structural changes in the business.
Outlook
We lower our FY24E EPS by ~4% to reflect for a) strong content increase, and b) lower value add/margins. We retain our FY25E EPS. We reiterate our Neutral stance on the stock with a TP of INR18,500 (based on ~25x Sep’25E EPS).
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