Q3FY21 Company Update - Bosch Limited - ICICI Direct

Bosch posted a healthy operational performance in Q3FY21. Revenues rose 19.4% YoY to Rs. 3,030 crore (automotive revenues up 25% YoY to Rs. 2,671 crore, non-automotive revenues down 10.6% YoY to Rs. 365 crore). Margins came in at 11.8%, up 20 bps QoQ. Encouragingly, employee costs (absolute) were down ~20% YoY. PBT before exceptional items were at Rs. 366 crore, up 5% YoY. PAT in Q3FY21 was at Rs. 186 crore. The company booked final tranche of its restructuring and reskilling programme costs at Rs. 147 crore (vs. Rs. 208 crore in Q3FY20; 9MFY21 costs at Rs. 744 crore).

Valuation & Outlook

Sales, adjusted PAT CAGR are expected at 22.4%, 29% CAGR, respectively, in FY21E-23E. We introduce FY23E numbers and upgrade the stock from SELL to HOLD, valuing at Rs. 16,550 (Rs. 10,950 earlier) 30x FY23E EPS. In our view, near term demand outlook is encouraging with Bosch benefitting from cyclical recovery in CV space but present valuation captures most positives.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Bosch_CoUpdate_Feb21.pdf

Shares of BOSCH LTD. was last trading in BSE at Rs.15619.95 as compared to the previous close of Rs. 16225.05. The total number of shares traded during the day was 5224 in over 1982 trades.

The stock hit an intraday high of Rs. 16330 and intraday low of 15530. The net turnover during the day was Rs. 82442060.

Source : Equity Bulls

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