UBS has maintained a ‘Sell’ rating on Bosch Ltd even as it raised the target price to ₹26,900, citing that the recent sharp rally in the stock has led to stretched valuations. While the company’s fundamentals remain intact, the brokerage believes the current price levels leave little room for further upside.
UBS on Bosch share: Sell, TP ₹26,900
UBS noted that Bosch’s Q1FY26 revenue and EBITDA were broadly in line with estimates. However, the stock’s recent strong performance is seen as being driven by expectations around restructuring and regulatory developments, particularly the potential ABS (anti-lock braking system) mandate.
Despite these tailwinds, UBS highlighted that Bosch is currently trading at a steep 34.5x FY27E P/E in a scenario where the ABS mandate is implemented, and at an even higher 39.9x without the mandate. Even assuming a bullish scenario with ABS implementation, earnings are projected to grow at a 31% CAGR through FY27, which UBS feels is already priced in.
Given the elevated valuation multiples, UBS sees limited further upside and recommends caution to investors at these levels.
Disclaimer: The views expressed in this article are those of the brokerage firm. This does not constitute investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
