Bosch slips 6% after posting Q3 results; here's what's dragging stock

Bosch shares slipped 5.6 per cent in Wednesday's trade, logging an intraday low at Rs 28,115.2 per share. The southward movement in the stock can be attributed to the company posting weak Q3FY25 results. 

 

Around 11:28 AM, Bosch share price was down 4.46 per cent at Rs 28,462.2 per share on BSE. In comparison, the BSE Sensex was up 0.27 per cent at 76,275.82. The market capitalisation of the company stood at Rs 72,004.63 crore. The 52-week high of the stock was at Rs 39,052 per share and the 52-week low was at Rs 23,232 per share. 

 

On Tuesday, after market hours, Bosch reported a 12 per cent decrease in consolidated net profit of Rs 458 crore as compared to a profit of Rs 518 crore a year ago. The revenue of the company rose to Rs 4,466 crore for the third quarter compared to Rs 4,205 crore in the year-ago period.

 

"This quarter, Bosch generated growth through the development of advanced automotive components and customer-focused solutions. Increased service income from major original equipment manufacturers (OEMs) testifies to their continued trust in us and our expertise," Bosch Ltd MD Guruprasad Mudlapur said. 

 

The performance further reinstates the company's strategic ability to stay cognizant of market needs and deliver successfully, he added.

 

As part of the realignment of its Building Technologies division globally, the company said it will be carving out and transferring the Video, Access and Intrusion, and Communication systems business to Keenfinity India, a subsidiary of Bosch Security Systems BV Nederland.

 

The company's board, based on the recommendations of the audit committee, have approved the transfer of the business at a value of not less than Rs 595 crore, it added.

 

InCred Equities maintained 'Reduce' rating on Bosch for a target of Rs 26,379 per share. The brokerage believes the sustained business restructuring by selling loss-making new businesses has improved the profit margin but has limited the sales momentum.

 

Bosch is a multinational engineering and technology company based in Germany, known for producing a wide range of products and services. Founded in 1886 by Robert Bosch, the company operates in various sectors including mobility solutions, industrial technology, consumer goods, and energy and building technology.

 

In the past one year, Bosch shares have gained 25 per cent against Sensex's rise of 5.5 per cent.