Shares of Bosch India Limited fell over 1 percent to Rs 31,100 in early trading on May 28. This drop comes after UBS maintained its ‘sell’ rating on the stock, citing high valuations. This news follows a day after the stock hit a new 52-week high.
UBS has increased its target price for Bosch shares to Rs 20,000, which is 36 percent lower than the current price. The previous target was Rs 18,000.
UBS stated that despite the company’s guidance for better margins, there are no clear plans for achieving these goals or for localization. The brokerage criticized Bosch’s high valuations given its performance and future prospects.
Bosch recently reported a 42 percent year-on-year increase in net profit, reaching Rs 564.4 crore, thanks to higher demand for passenger cars and consumer goods. This is up from a net profit of Rs 398.1 crore in the same period last year.
Revenue from operations increased by 4.2 percent year-on-year to Rs 4,233.4 crore, compared to Rs 4,063.4 crore in the previous quarter. Product revenue for its Mobility and Beyond Mobility sectors rose by 3 percent and 14 percent, respectively, driven by growth in the consumer goods segment.
For the entire financial year, Bosch’s net profit jumped nearly 75 percent to Rs 2,491.3 crore, compared to Rs 1,425.5 crore the previous year. Revenue grew by 12 percent, reaching Rs 16,727.1 crore by the end of FY24, up from Rs 14,929.3 crore in FY23.
At around 9:40 am on Tuesday, Bosch’s shares on the NSE were trading at Rs 31,148 each, down 1.3 percent from the previous close. Bosch’s shares have surged 42 percent since the beginning of the year.
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