BOSCHLTD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | BOSCHLTD | Market Cap | 1,06,512 Cr. | Current Price | 36,130 ₹ | High / Low | 41,945 ₹ |
| Stock P/E | 46.9 | Book Value | 4,754 ₹ | Dividend Yield | 1.42 % | ROCE | 21.1 % |
| ROE | 15.6 % | Face Value | 10.0 ₹ | DMA 50 | 36,789 ₹ | DMA 200 | 35,965 ₹ |
| Chg in FII Hold | 0.21 % | Chg in DII Hold | -0.18 % | PAT Qtr | 554 Cr. | PAT Prev Qtr | 670 Cr. |
| RSI | 46.4 | MACD | -289 | Volume | 8,094 | Avg Vol 1Wk | 17,280 |
| Low price | 25,922 ₹ | High price | 41,945 ₹ | PEG Ratio | 2.56 | Debt to equity | 0.01 |
| 52w Index | 63.7 % | Qtr Profit Var | 10.8 % | EPS | 909 ₹ | Industry PE | 28.0 |
💹 Financials: Bosch Ltd demonstrates solid fundamentals with ROE at 15.6% and ROCE at 21.1%, reflecting efficient capital usage. Debt-to-equity at 0.01 indicates a virtually debt-free balance sheet, enhancing financial stability. Quarterly PAT declined from 670 Cr. to 554 Cr., showing earnings pressure, though YoY profit variation is positive at 10.8%. EPS at 909 ₹ highlights strong earnings power.
📊 Valuation: The stock trades at a P/E of 46.9, significantly higher than the industry average of 28.0, suggesting premium valuation. The P/B ratio is ~7.6 (36130/4754), which is elevated. PEG ratio of 2.56 indicates valuations are stretched relative to growth. Dividend yield at 1.42% is decent, offering moderate income return.
🏢 Business Model & Advantage: Bosch operates in automotive components, industrial technology, and consumer goods, with strong brand recognition and global presence. Its competitive advantage lies in technological innovation, diversified product portfolio, and leadership in automotive solutions. Demand is supported by automotive sector growth and industrial modernization.
📈 Overall Health: Financially robust with strong earnings, minimal debt, and consistent return ratios. RSI at 46.4 suggests neutral momentum, while MACD at -289 indicates bearish sentiment in the short term. Long-term fundamentals remain intact, supported by brand strength and diversified operations, though valuations are demanding.
🎯 Entry Zone: Attractive entry around 34,500–35,500 ₹ range, near DMA 200 support levels. Current price of 36,130 ₹ is slightly above fair value. Long-term investors may accumulate gradually, but caution is advised due to premium valuation multiples.
Positive
- Strong ROCE (21.1%) and ROE (15.6%) indicate efficient capital use.
- Virtually debt-free balance sheet (Debt-to-equity: 0.01).
- EPS of 909 ₹ highlights strong earnings power.
- FII holdings increased by 0.21%, reflecting foreign investor confidence.
Limitation
- High P/E (46.9) compared to industry average (28.0).
- High P/B ratio (~7.6) suggests stretched valuation.
- PEG ratio of 2.56 indicates valuations are expensive relative to growth.
- Quarterly PAT declined sequentially from 670 Cr. to 554 Cr.
Company Negative News
- Sequential decline in quarterly PAT indicates earnings pressure.
- DII holdings decreased by -0.18%, showing reduced domestic institutional support.
Company Positive News
- YoY profit growth of 10.8% highlights resilience.
- FII holdings increased by 0.21%, reflecting foreign investor confidence.
- Strong brand recognition and diversified product portfolio.
Industry
- Automotive components industry is expanding due to rising vehicle demand and industrial modernization.
- Industry P/E at 28.0 indicates Bosch trades at a premium valuation compared to peers.
Conclusion
Bosch Ltd remains a fundamentally strong company with robust earnings, minimal debt, and diversified operations. However, high valuations and sequential earnings decline limit upside potential. Entry around 34,500–35,500 ₹ is advisable for long-term investors, with cautious accumulation recommended given premium multiples.