Bosch Share Price: Motilal Oswal has maintained a Neutral rating on Bosch with a target price of Rs 35,323, implying a potential upside of around 13 per cent from current levels. The brokerage said the recent acquisition plans to acquire a 100 per cent stake in Bosch Chassis Systems India is rewarding for minority shareholders and is expected to deliver a 5 per cent EPS accretion in FY25, along with stronger medium‑term growth prospects. However, after a sharp 19 per cent rally over the past three sessions, MOSL believes valuations are now fair, even as the consolidated entity is projected to post robust revenue and earnings growth driven by margin expansion and acquisition‑led synergies.
Maintain Neutral with target price of Rs 35,323 versus Rs 31,375
Acquisition is rewarding for minority shareholders
As per the mgmt., this acquisition will lead to EPS accretion of 5% on FY25 basis
While this acquisition is favoring minority shareholders, the stock has already rallied almost 19 per cent in the last three trading sessions and now appears fairly valued at 40 times its estimated FY27 earnings per share and 35.7 times its estimated FY28 earnings per share.
expect the consolidated entity to post 21 per cent revenue CAGR over FY26-28E, led by the acquisition
This acquisition is likely to drive a steady 11 per cent EPS CAGR over FY26-28E
Given the better margin profile of the acquired entity, we expect consolidated margins to improve 120bp to 14.3 per cent over FY26-28E
Bosch plans to acquire a 100 per cent stake in Bosch Chassis Systems India and the transaction is valued at up to Rs 9,068.68 crore and will be structured through a combination of a preferential equity share allotment and a cash payment, with the deal expected to be completed by July 7, 2026.
Following the acquisition, Bosch Chassis Systems India will continue to operate as a standalone entity, while its overall governance and oversight will remain with Bosch Ltd. The acquisition will involve the purchase of shares from existing owners Robert Bosch Investment Nederland BV and Robert Bosch LLC, under a share purchase agreement executed between Bosch Ltd and the promoter group entities.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
