Sharekhan has given Buy recommendation for Bosch with a target price of Rs. 18156 in its research report issued on Feb 11, 2021
Sharekhan’s research report on Bosch
Q3FY21 results beat estimates, driven by faster-than-expected recovery in sales. However, EBITDA margins lagged expectations by 20 bps. We expect Bosch’s earnings to grow robust 46.4% in FY2022E and 21.5% in FY2023E, driven by a rise in demand and operating leverage benefits. Expansion of power tool business’ distribution network, export of BS-VI automotive components to neighbouring countries, increased adoption of connected and EVs would be key growth drivers.
Outlook
We retain a Buy rating on Bosch Limited (Bosch) with a revised PT of Rs. 18,156, factoring a recovery in its business outlook and earnings upgrade.