Shares of Bosch
hit an over 10-month high of Rs 21,881, up 9% on Thursday in intra-day trade, extending its Wednesday’s 6.5% rally on the BSE
in an otherwise subdued market.
The stock of the auto
ancillary company was trading at its highest level since October 18, 2017. It touched a 52-week high of Rs 22,600 on September 5, 2017, on the BSE
in intra-day trade.
had reported 42.4% year on year (YoY) growth in net profit at Rs 4.31 billion in the first quarter of fiscal 2018-19 (Q1FY19). Operation revenue during the quarter grew 21.3% at Rs 32.12 billion on YoY basis.
The company is optimistic of an overall growth in the automotive industry in 2018-19, with the continued strong upward trend in passenger cars, LCVs, and tractors. Predicted favorable monsoon and faster economic growth this year are likely to boost farm income, which, in turn, will boost rural sales of 2-Wheelers, passenger cars, and tractors.
For the non-automotive segment, the Company is cautiously optimistic inspite of having positive economic indicators like robust economic growth, rising household incomes and increase in consumer spendings due to unprecedented business exigencies, Bosch
said in an annual report.
Analysts at ICICI Securities believe Bosch
being the leader & with technological (R&D) support from its parent is well prepared to cater to the industry with BS VI norms by 2020.
has started to acquire a sizeable market share in the 2-W OEM space (as they are working on BS VI norms) where there will be a shift from a carburetor to the injection system. Thus, the 2-W space will supplement its growth, going forward. Thus, we expect revenues to register a CAGR of 13% in FY18-20E, primarily driven by the automotive segment, the brokerage firm said in result update.