I-Sec upgrades Bosch to Hold, raises target price to Rs 30,000

ICICI Securities has upgraded Bosch to Hold from reduce with a revised target price of Rs 30000 (earlier Rs 25,130). The current market price of Bosch is Rs 31450.95.
Bosch, incorporated in 1951, is a Large Cap company with a market cap of Rs 92521.55 crore, operating in the Auto Ancillaries sector.

Bosch’s key products/revenue segments include Automotive Products, Consumer Durables, Others, Sale of services, Rental Income, Other Operating Revenue, Export Incentives, Scrap for the year ending 31-Mar-2024.

Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 5147.40 crore, up 10.59% from last quarter Total Income of Rs 4654.70 crore and up 15.43 % from last year same quarter Total Income of Rs 4459.50 crore. The company has reported net profit after tax of Rs 553.60 crore in the latest quarter.

The company’s top management includes Mr.Soumitra Bhattacharya, Mr.Guruprasad Mudlapur, Mr.N Sandeep, Mr.Stefan Grosch, Ms.Hema Ravichandar, Mr.S V Ranganath, Dr.Gopichand Katragadda, Mr.Pawan Kumar Goenka, Ms.Padmini Khare, Mr.Soumitra Bhattacharya, Ms.Karin Gilges, Mr.Guruprasad Mudlapur, Mr.N Sandeep, Mr.Stefan Grosch, Ms.Hema Ravichandar, Mr.S V Ranganath, Dr.Gopichand Katragadda, Mr.Pawan Kumar Goenka, Ms.Padmini Khare, Ms.Karin Gilges. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 3 crore shares outstanding.

Investment Rationale
Bosch India?s (BOS) Q4FY25 EBITDAM of 13.2% (flat YoY) was in line with consensus estimate. Gross margin improvement of ~300bps was offset by higher other expenses. Revenue grew 16% YoY in Q4 to INR 49bn led by growth in mobility segment (mainly in tractor and PC segments). EBITDA margin at 13.2% was largely in line with consensus estimates, with share of traded goods declining to ~40% in Q4, led by localisation efforts. In medium to long term, technological and regulatory changes, including TREM V norms, are expected to increase the company?s content per vehicle. ICICI Securities has upgraded it to HOLD from Reduce with DCF-based revised target price of Rs 29,950 (earlier: Rs 25,130), implying 35x FY27E EPS, with EPS CAGR of ~12% over FY25-27E.
Promoter/FII Holdings
Promoters held 70.54 per cent stake in the company as of 31-Mar-2025, while FIIs owned 6.09 per cent, DIIs 15.97 per cent.