New guidelines, higher M&HCV demand to drive gains for Bosch stock

Strong volume growth in its core segments of M&HCV/tractors should help keep the sales trajectory elevated

The stock of auto component major Bosch was up 2.5 per cent on Wednesday and in the process hit its 52-week high. Expectations of higher volumes of medium and heavy commercial vehicles’ (M&HCV), rise in content supplies on account of BS VI stage 2 implementation from April, and improved profitability are some of the positives for the stock. In addition to this, the company appointed a new managing director and joint managing director last week, which will come into effect from July 1.

The immediate trigger for the stock would be the transition to the stage 2 BS VI norms.