Neutral Bosch; target of Rs 34,280: Motilal Oswal

Motilal Oswal's research report on Bosch

Bosch’s (BOS) 2QFY25 performance beat our estimates owing to lower RM costs (led by lower traded goods) as BOS continued its efforts for the localization of components. Auto demand remains weak across its key segments, especially for CVs and PVs. While BOS continues to work toward the localization of new technologies, given the long gestation projects, its margin remains under pressure with no visibility of improvement, at least in the near term.

Outlook

We maintain our FY25/FY26 EPS estimates. At ~45x FY25E/38x FY26E EPS, the stock appears fairly valued. We reiterate our Neutral stance on the stock with a TP of INR34,280 (based on ~35x Sep’26E EPS).

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