Bosch Limited

Consumer Cyclical — Auto Parts · NSE

₹45,560.00+₹525.00 (+1.17%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Bosch Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bosch Limited engages in the manufacture and trading of automotive products in India. It operates through Automotive Products, Consumer Goods, and Others segments.

IndustryAuto Parts

SectorConsumer Cyclical

Employees37,131

Annual revenue₹19,595 Cr

How does it make money?

Turns over ₹19,595 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 37,131 employees supports ₹52.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹52.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.7% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 13.2% and earnings to grow about 10.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.2%

Est. earnings growth+10.8%

Analysts5

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +34% while net margin moved +45% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+34%

Margin effect+45%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 56.9x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 48.8x
✗ P/B of 9.05x is a steep premium to book

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

56.9x

3Y Median

48.8x

40 monthly readings · mean 48.9x · range 31.4x–72.4x

Sector Median

34.7x

median of 3 sector peers

⚠️Current valuation is approximately 17% above its 3y median of 48.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 64% above the peer median of 34.7x.

vs. its own history

Fair

48.8x median over 40 months · +17%

vs. sector peers

Expensive

34.7x median of 3 peers · +64%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

43.0x

PEG

2.29

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 14.3% to 15.9% over 3 years.
Cash generation is improving
Free cash flow is up 225% over 3 years.
Return on equity is rising
ROE has improved from 13.0% to 18.7%.
Return on capital is rising
ROCE has improved from 16.8% to 24.2%.
High return on capital employed
ROCE of 24.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 123% over 3 years, from ₹53 Cr to ₹119 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 14.3% to 15.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 64% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.3% CAGR
Latest reported year was 22.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1,859 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 24.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹1.34 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

56.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.05x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹801.27

Profitable

Profitable on a per-share basis

ROE

18.7%

Strong

Strong capital efficiency

ROCE

24.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.80x

Moderate

Moderate leverage

Revenue Growth (YoY)

22.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-36.7%

Falling

Profits are shrinking

Dividend Yield

0.59%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1,859 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

40.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.4%

Average

Average margins

Net Margin

11.3%

Good

Strong bottom-line conversion

Current Ratio

1.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.71

Defensive

Steadier than the market

52W Range Position

79%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

45913.0 / 46829.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,612 Cr	₹16,379 Cr	₹17,682 Cr	₹19,595 Cr	+10.3%
EBITDA	₹2,093 Cr	₹2,539 Cr	₹2,727 Cr	₹3,122 Cr	+14.3%
EBITDA Margin	14.3%	15.5%	15.4%	15.9%	—
PAT (Net Profit)	₹1,426 Cr	₹2,491 Cr	₹2,015 Cr	₹2,773 Cr	+24.8%
EPS	₹483.32	₹844.68	₹683.25	₹940.27	+24.8%
ROE	13.0%	20.7%	14.6%	18.7%	—
ROCE	16.8%	26.3%	19.5%	24.2%	—
Total Debt	₹53 Cr	₹39 Cr	₹118 Cr	₹119 Cr	+30.7%
Free Cash Flow	₹573 Cr	₹929 Cr	₹2,058 Cr	₹1,859 Cr	+48.1%

🟢 Revenue has grown at 10.3% a year over 3 years.

🟢 EBITDA has grown at 14.3% a year over 3 years.

🟢 EBITDA Margin has risen from 14.3% to 15.9% over 3 years (+1.6 pts).

🟢 PAT (Net Profit) has grown at 24.8% a year over 3 years.

🟢 EPS has grown at 24.8% a year over 3 years.

🟢 ROE has risen from 13.0% to 18.7% over 3 years (+5.7 pts).

🟢 ROCE has risen from 16.8% to 24.2% over 3 years (+7.4 pts).

🔴 Total Debt has grown at 30.7% a year over 3 years.

🟢 Free Cash Flow has grown at 48.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21,680 Cr

Total Liabilities

₹6,835 Cr

Cash & Equivalents

₹396 Cr

Operating Cash Flow

₹2,175 Cr

Capex

-₹317 Cr

Shareholding (proxy)

Institutional Holding

18.3%

Insider Holding

70.7%

Corporate Actions

Next Earnings

06 Nov 2026

Dividend Rate

₹270

Ex-Dividend Date

04 Aug 2026

Analyst Consensus

Recommendations

4 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹52,113.4

+14.4% vs CMP

Target Range

₹46,250 – ₹57,500

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive2 mixed3 general

BOSCHLTD Outlook for the Week

Equitypandit, 09 Oct

Johnson Controls Hitachi Share Price

Upstox, 16 Oct

Bosch Limited (NSE:BOSCHLTD) Passed Our Checks, And It's About To Pay A ₹270.00 Dividend

Simply Wall Street, 31 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Bosch share price soars 18% so far in August; hits new high in weak market

Business Standard, 18 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Bosch Home Comfort India Ltd | Stock Share Price Live

MarketSmith India, 07 Aug

Bosch Shares Rise 2% to Rs 42,025 in Early Trade

Moneycontrol.com, 05 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑