Bosch fell 2.83% to Rs 14,180, extending recent losses.
Shares of Bosch are down 4.45% in two trading sessions to its current market price of Rs 14,180, from a recent closing high of Rs 14,840.75 on 23 September 2019.Bosch has executed a business transfer agreement with the group's arm Robert Bosch Packaging Technology to sell its packaging machinery business for Rs 144.60 crore. Sale of the aforementioned business to be effective from close of 30 September 2019.
The board has also decided to close the company's thermo-technology business. Overall revenue from this business is small and not material. Considering the business competitiveness and market attractiveness, the company doesn't find this business as viable. Overall, it is a highly fragmented market with very high competition from unorganized players. The announcement was made after market hours yesterday, 24 September 2019.
Meanwhile, the S&P BSE Sensex was down 297 points or 0.76% to 38,800.40. The market surged recently after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
As on 31 March 2019, Bosch paid corporate tax of 34.04%.
On the BSE, 82 shares were traded in the Bosch counter so far compared with average daily volumes of 1,057 shares in the past two weeks. The stock hit an intraday high of Rs 14,515 and an intraday low of Rs 14,137.7 so far during the day.
The stock hit a 52-week high of Rs 20,576 on 25 September 2018. The stock hit a 52-week low of Rs 12,698.80 on 14 August 2019.
The stock had underperformed the market over the past one month, up 2.52% compared with 4.28% rise in the Sensex. The scrip underperformed the market in past one quarter, down 11.05% as against Sensex's 0.07% fall. The scrip had also underperformed the market in past one year, down 25.79% as against Sensex's 7.69% fall.
Bosch's consolidated net profit fell 35.1% to Rs 279.97 crore on a 13.5% decline in net sales to Rs 2,778.82 crore in Q1 June 2019 compared with Q1 June 2018.
Bosch operates in the manufacturing and trading of automotive products.
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