Motilal Oswal's research report on Bosch
Bosch (BOS)’s overall 2QFY24 performance remained muted, mainly on the margin front, where adverse mix, higher trading content, and weaker FX dragged margins to 11.9% (v/s est. 13%). BOS remains committed to localization, and this would yield results in the medium term, thus aiding margins. However, we do not foresee margins recovering above 15% over the next 2-3 years due to structural changes in the business.
Outlook
We cut our FY24E/FY25E EPS by ~5%/2% to reflect: a) slower growth in both auto/non-auto divisions, b) weaker margins. We reiterate our Neutral rating on the stock with a TP of INR18,500 (based on ~25x Dec’25E EPS).
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