Bosch's Strong Q1 Earnings Beat Led By Improved Margins; Motilal Oswal Retains 'Neutral' — Check Target Price
While Bosch continues to work toward localization of new technologies, given the long gestation of projects, margin remains under pressure with no visibility of material improvement in the near term
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Bosch’s Q1 FY26 PAT at Rs 6.7 billion was well above brokerage's estimate of Rs 4.9 billion, fueled by better-than-expected operational performance and higher other income. The key highlight of Q1 was a 75% YoY growth in the two-wheeler segment.
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Motilal Oswal Report
Given the better-than-expected operational performance in Q1, we raise our FY26/FY27 estimates by 13%/12%. While Bosch Ltd. continues to work toward the localization of new technologies, given the long gestation of projects, its margin remains under pressure with no visibility of material improvement, at least in the near term.
Following the recent run-up, the stock at ~50x FY26E/42.4x FY27E EPS appears fairly valued. We reiterate our Neutral rating with a target price of Rs 35,967 (based on ~36x Jun’27E EPS).
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