Bosch Ltd - Company Update - Aug 2020 - ICICI Securities

Bosch Ltd reported subdued Q1FY21 results, outperforming OEM volumes for the quarter courtesy increase in content/vehicle. Net revenues came in at Rs. 992 crore (down 64% YoY), with automotive revenues down 65.6% YoY to Rs. 813 crore. Revenues of powertrain solutions fell 78.3% YoY while revenue of ex-mobility solutions business fell 60% YoY. The company reported loss at EBITDA level of Rs. 103 crore, with automotive EBIT loss at Rs. 309 crore. All chief cost items rose on percentage of sales basis. Consequent reported loss at PAT level was at Rs. 121 crore vs. profit of Rs. 282 crore in Q1FY20. Bosch continued to book exceptional charges towards restructuring and transformational projects amid structural and cyclical changes in the automotive sector, which for the quarter was at Rs. 197 crore.

Valuation & Outlook

We continue to maintain cautious stance on Bosch, primarily due to demand challenges given its high exposure to CV space, assign SELL post sharp rally in past few months. We value it at Rs. 10,950 i.e. 27x FY22E EPS of Rs. 406/share.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Bosch_CoUpdate_Aug20.pdf

Shares of BOSCH LTD. was last trading in BSE at Rs.14244.05 as compared to the previous close of Rs. 13260.95. The total number of shares traded during the day was 9980 in over 3634 trades.

The stock hit an intraday high of Rs. 14474.8 and intraday low of 12957.5. The net turnover during the day was Rs. 140423470.

Source : Equity Bulls

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