Bosch Q2 Results Review - Operational Beat Mainly Led By Improved Mix: Motilal Oswal

Motilal Oswal Report

Auto demand remains weak across its key segments, especially for commercial vehicles and passenger vehicles. While Bosch Ltd. 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.

We maintain our FY25/FY26 EPS estimates. While Bosch is outperforming the underlying auto industry growth with new order wins, visibility for margin recovering to 15-16% is low. At ~45 times FY25E/38x FY26E earnings per share, the stock appears fairly valued. Hence, we reiterate our Neutral rating with a target price of Rs 34,280 (premised on 35 times Sep’26E EPS).

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