No material catalysts visible for re-rating of Bosch stock: Motilal Oswal

One way that the company can improve margins is by increasing the localisation content

The stock of automotive (auto) component maker Bosch has risen by 9 per cent over the past fortnight. Although the company’s July-September quarter results disappointed the Street, near-term upsides from festival demand, a recovery in exports, higher localisation, and increased content per vehicle are key positives supporting the stock. Ongoing investments and forays into new opportunities should further contribute to expanding its revenue base.

While the company’s September quarter sales performance was broadly in line with estimates, with the auto segment growing by 

13 per cent and non-auto rising by 8 per cent, it was the operating performance that came up short.