Valuations, near-term headwinds keep brokerages cautious on Bosch

Sales growth of 4 per cent for the second-largest listed auto parts player by market capitalisation came from the mobility segment

Auto component major Bosch reported a lower-than-expected performance in the June quarter (Q1FY25). While revenue growth was weak at 4 per cent over the year-ago quarter, margin performance was subpar.

Most brokerages are cautious on the outlook and have a ‘sell’ rating. Some have also cut their FY25 and FY26 earnings estimates to factor in the Q1 performance, cost pressures, and near-term headwinds.

Given the multiple concerns on the operating front as well as valuations, the stock has slipped 11 per cent since the beginning of this month. 

The sales growth of 4 per cent for the