Premium valuations, pressure on margins may restrict gains in Bosch

The management is cautious on the near-term outlook

Auto parts supplier Bosch was the biggest loser among BSE 100 stocks, shedding over four per cent on margin worries and premium valuations. The fall came in despite better-than-expected June quarter (Q1FY22) performance. Gross margins in the quarter were higher by 250 basis points on a sequential basis, to 41 per cent, on improved product mix, cost reduction and pass-through of commodity costs. Better gross margins aided the company in restricting the sequential decline at the operating profit level by 180 basis to 12.5 per cent, say analysts at Motilal Oswal Financial Services who had pegged this number at 11