Shares of Bosch Ltd slipped over 2% on Wednesday to trade at Rs 39,410 on the NSE, as global brokerage UBS maintained a ‘Sell’ rating on the stock, despite marginally raising its target price to Rs 26,900.
UBS stated that while Bosch’s Q1 FY26 revenue and EBITDA were broadly in line with expectations, the recent rally in the stock has stretched valuations. The optimism, according to UBS, stems largely from anticipated restructuring and regulatory developments, particularly a potential ABS (anti-lock braking system) mandate.
However, the brokerage flagged concerns over current valuation multiples. It noted that Bosch is trading at 34.5x FY27E P/E assuming the ABS mandate goes through, and nearly 39.9x without it. Even in a bullish scenario with 31% projected CAGR in earnings through FY27, UBS believes this growth is already factored into the price.
While acknowledging the company’s strong fundamentals, UBS sees limited upside from current levels and has advised caution to investors.
