20 May 2021
4QFY21 Results Update | Sector: Automobile
Bosch
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
BOS IN
31
467.1 / 6.4
16900 / 9100
14/20/10
2170
CMP: INR15,838
TP: INR15,850
Neutral
Above estimates; strong traction in revenue continues…
…but margin recovery yet to happen due to higher traded content
Revenue continued to grow faster than underlying industry growth in
4QFY21. While the current situation will impact demand in the near term,
we expect growth to rebound faster on account of strong Tractor demand,
addition of the 2W segment, and higher content. The stock price largely
reflects all the negatives, but there are no major re-rating catalysts on the
anvil.
We cut our FY22E EPS by 4% to account for near term challenges, while
maintaining our FY23E earnings estimate. We maintain our
Neutral
rating
with a TP of INR15,850 per share.
Financials & Valuations (INR b)
Y/E March
Sales
EBITDA Margin (%)
Adj. PAT
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
Div. Yield (%)
FCF Yield (%)
FY21 FY22E
97.2 121.4
10.0
17.3
9.9
13.7
335.4 463.0
-20.6
38.1
3,331 3,669
10.4
12.2
66.2
47.2
4.8
0.7
1.1
13.2
17.5
27.0
34.2
4.3
0.8
0.2
FY23E
136.6
21.6
16.7
Stronger revenue growth in both businesses, but margin falters
565.9
Revenue/EBITDA/adjusted PAT grew 44%/35%/13% YoY in 4QFY21 to
22.2
INR32.2b/INR4.6b/INR3.5b. The same in FY21 declined ~1%/32%/21% YoY.
4,105
Auto revenue grew 47% YoY, driven by 65.6% growth in Powertrain (driven
14.6
19.3
23.0
28.0
3.9
0.8
2.5
Shareholding pattern (%)
As On
Mar-21 Dec-20 Mar-20
Promoter
70.5
70.5
70.5
DII
16.2
15.7
13.1
FII
4.3
4.6
7.5
Others
8.9
9.1
8.8
FII Includes depository receipts
by both volume and content) and growth in the 2W business. Non-Auto
revenue grew 25%, led by growth in the Power Tool segment.
Gross margin declined 750bp YoY (-340bp QoQ) to 38.6% due to changes in
the product mix (higher traded goods), BS-VI, and higher inward freight
cost. Operating leverage restricted adjusted EBITDA margin, which fell
100bp YoY to 14.3% (est. 15.3%).
Reported staff cost was lower by ~INR1.58b due to one-time reversal of
wage settlement/retirement benefit for employees who were part of the
restructuring exercise. Adjusted for the reversal, staff cost stood at INR2.9b.
PBT before EO grew 33% to INR4.8b (est. INR4.6b). Adjusted PAT grew by
13% to INR3.46b (est. INR3.2b) as the base quarter had a tax reversal.
It declared a final dividend of INR115/share for FY21 (v/s INR105 for FY20).
Outlook:
The demand situation in India remains uncertain due to a localized
lockdown, supply chain issues, and unavailability of oxygen. The
macroeconomic indicators can be compared to Jul’20.
BOS’ parent is the largest suppliers of e-drive, e-axle, and power electronics
(inverter and converters). Its current order book exceeds USD20b. In India,
it would like to replicate its similar success across segment from low voltage
(2W/3Ws) to high voltage (PVs/CVs). It expects the Indian market to be
dominated by ICE engines (~80% till CY30), with 2W/3W to be the first
disrupted.
The management reiterated that any electric vehicle-related business will
be part of the listed entity, including fuel cell technology for CVs.
After successfully navigating to BS-VI, the next emission milestones involve
transitioning to TREM5 (for Off-Highway engines), adoption of Café Norms
(Phase II), and BS-VI (Stage-2).
Highlights from the management commentary
Jinesh Gandhi - Research analyst
(Jinesh@MotilalOswal.com)
Vipul Agrawal - Research analyst
(Vipul.Agrawal@MotilalOswal.com)
11 August
research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
1
Motilal Oswal
2020
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
Bosch
The company will follow a two pronged strategy for its non-Auto business: 1) ‘fit
for market’ solutions, and 2) increase its ‘go to market’ footprint using both
offline and digital platforms.
Trade payables have increased due to extension of credit by suppliers, resulting in
higher credit period to BOS.
Valuation and view
Valuations of ~34.2x/28x FY22E/FY23E EPS largely factors in changes in its
competitive positioning since BS-IV. While the negatives are priced in, there are
no material catalysts for the stock over the next 2-3 quarters. Hence, we maintain
our
Neutral
stance with a TP of INR15,850/share (~28x Mar’23E EPS).
(INR b)
Quarterly perf. (Standalone)
Y/E March
Net Sales
YoY Change (%)
RM Cost (% of sales)
Staff Cost (% of sales)
Other Expenses (% of sales)
EBITDA
Margin (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord. expense
PBT after EO Expense
Tax Rate (%)
Adjusted PAT
YoY Change (%)
1Q
27.6
-14.2
54.4
12.8
15.2
4.8
17.6
0.7
0.0
1.0
5.1
0.8
4.2
33.7
3.4
-20.2
FY20
2Q
23.1
-26.9
55.4
14.5
15.5
3.4
14.6
0.8
0.0
1.7
4.2
2.7
1.5
28.5
3.1
-25.5
3Q
25.4
-15.7
52.1
12.0
23.2
3.2
12.6
1.1
0.0
1.4
3.5
1.9
1.6
12.9
2.8
-14.2
4Q
22.4
-18.6
53.9
12.4
18.5
3.4
15.3
1.2
0.0
1.4
3.6
3.0
0.6
-28.9
3.1
-25.7
1Q
9.9
-64.0
57.7
24.5
28.1
-1.0
-10.3
0.7
0.0
1.7
0.0
1.7
-1.7
46.9
0.5
-84.6
FY21
2Q
24.8
7.2
59.4
12.4
16.6
2.9
11.6
0.8
0.0
1.0
3.1
4.0
-0.9
29.1
2.8
-11.1
3Q
30.3
19.4
57.9
8.1
22.2
3.6
11.8
1.0
0.1
1.1
3.7
1.5
2.2
15.2
3.1
10.6
4Q
32.2
43.8
61.4
9.1
15.2
4.6
14.3
0.9
0.0
1.2
4.8
-1.6
6.4
24.7
3.5
13.1
FY20
98.4
-18.6
53.9
12.9
18.1
14.8
15.1
3.8
0.1
5.5
16.4
8.4
7.9
23.9
12.5
-21.9
FY21
97.2
-1.3
59.4
11.2
19.1
10.0
10.3
3.4
0.1
5.0
11.5
5.6
6.0
14.2
9.9
-20.6
4QFY21E
29.6
32.1
57.8
8.7
18.1
4.5
15.3
1.1
0.0
1.2
4.6
0.0
4.6
32.0
3.2
3.5
Key performance indicators
Segmental mix (INR b)
Auto
Growth (%)
PBIT margin (%)
Contribution (%)
Non-Auto
Growth (%)
PBIT margin (%)
Contribution (%)
1Q
23.6
(13.5)
17.4
85.6
4.0
(17.9)
15.9
14.6
27.6
(14.2)
FY20
2Q
3Q
19.5
21.4
(28.9)
(15.5)
15.0
11.4
84.5
84.5
3.6
4.1
(14.6)
(19.7)
9.2
2.8
15.8
16.1
23.1
(26.9)
25.4
(15.7)
4Q
18.8
(18.2)
13.2
84.0
3.6
(20.8)
10.4
16.1
22.4
(18.6)
1Q
8.1
(65.6)
(38.0)
82.0
1.8
(53.9)
2.5
18.6
9.9
(64.0)
FY21
2Q
3Q
21.3
26.7
8.9
24.7
(6.8)
5.4
85.9
88.2
3.5
3.6
(3.0)
(10.6)
9.4
20.0
14.3
12.0
24.8
7.2
30.3
19.4
4Q
27.7
47.3
18.6
86.0
4.5
25.1
24.6
14.0
32.2
43.8
FY20
83.4
(19.1)
14.3
84.7
15.3
(18.3)
9.5
15.6
98.4
(18.9)
FY21
83.8
0.5
2.5
86.2
13.5
(11.7)
16.4
13.9
97.2
(1.3)
Total Revenue (post inter-
segment)
Growth (%)
E: MOFSL estimates
20 May 2021
2
 Motilal Oswal Financial Services
Bosch
Exhibit 1: Trend in revenue
Net Sales (INR b)
21
13
-2
-13
-14
Growth (%)
7
-64
32
32
30
27
28
23
25
22
10
25
32
30
19
44
-27
-16
-19
Source: Company, MOFSL
Exhibit 2: EBITDA and EBITDA margin trend
EBITDA (INR b)
EBITDA Margins (%)
Exhibit 3: Share of Auto and Non-Auto in PBIT
15
13
10
Auto
Non-Auto
4
13
130
85
87
90
96
87
102
66
82
18
34
6.3 6.0 4.1 5.2 4.8 3.4 3.2 3.4
-1.0
2.9 3.6 4.6
Source: Company, MOFSL
Source: Company, MOFSL
4QFY20
2,474
(29.9)
13.2
375
(38.9)
10.4
2,849
(31.2)
12.7
1QFY21
(3,091)
(117.1)
(38.0)
47
(97.8)
2.5
(3,044)
(115.0)
(30.7)
2QFY21
(1,451)
(135.4)
(6.8)
333
(47.9)
9.4
(1,118)
(123.6)
(4.5)
3QFY21
4QFY21
1,442
5,161
(50.8)
110.6
5.4
18.6
729
1,112
117.2
882.0
20.0
24.6
2,171
6,273
(33.6)
144.7
7.2
19.5
Source: Company, MOFSL
Exhibit 4: PBIT break-up
INR m
Auto
Growth (%)
PBIT Margin (%)
Non-Auto
Growth (%)
PBIT Margin (%)
Total
Growth (%)
PBIT Margin (%)
4QFY19
3,527
(39.0)
15.4
614
(32.4)
13.5
4,141
(38.1)
15.1
1QFY20
4,103
(26.8)
17.4
639
10.2
15.9
4,742
(23.3)
17.2
2QFY20
2,934
(44.5)
15.0
336
(18.8)
9.2
3,269
(42.6)
14.1
3QFY20
2,450
(33.5)
11.4
113
(80.2)
2.8
2,564
(39.8)
10.1
Valuation and view
Strong industry positioning; technology focus enables higher growth visibility
BOS has a long-term strategy to shape the market in key technologies, with
innovative products and solutions. Its stance of being a technology agnostic
partner with customers, governments, and stakeholders continues.
Since CY17, BOS has executed 79 BS-VI projects in PVs/CVs with major OEMs.
Despite the second COVID wave, it plans to continue with critical investments in
competence development and solutions designed/developed for India.
For all businesses beyond Mobility Solutions, it has adopted a two-pronged
approach. It continues to introduce ‘fit for market’ products, and plans to increase
its ‘go to market’ footprint, using both offline and digital platforms.
20 May 2021
3
 Motilal Oswal Financial Services
Bosch
The electrification of 2Ws/3Ws opens up new growth avenues as BOS would be
relatively better positioned in these segments due to limited competition as
compared to e-PVs. Our estimates up to FY23E do not factor in any material
contribution from e-2Ws/e-3Ws.
With the return of operating leverage in FY23E, EBITDA margin would recover to
~15.8% after diving to ~10.3% in FY21 (15.1% in FY20). This would result in 30%
EPS CAGR over FY21-23E (on the back of 19% revenue CAGR and low base). We
estimate RoE to improve to ~14.6% (from 10.4%/13.5% in FY21/FY20) and RoIC to
improve by ~24% by FY23E (from 12.5%/19.1% in FY21/FY20).
Valuation and view:
We cut our FY22E EPS by 4% to account for near term
challenges, while maintaining our FY23E earnings estimate. Despite BOS losing
market share in CVs during the transition to BS-IV/BS-VI and even as the decline in
its stronghold PV diesel continues, increase in content and opening up of
opportunities in the 2W segment would more than make up for the loss.
Valuations have corrected over the last four years in line with the muted earnings
and dilution in competitive positioning. We expect BOS to outperform underlying
industry volumes, barring the substantial divergence in segmental trends, driven
by an increase in BS-VI content as well as additional revenue from 2W EFI. The
stock trades ~34.2x/28x FY22E/FY23E EPS. The stock price largely reflects all the
negatives. Since there are no material catalysts over the next 2-3 quarters, we
maintain our Neutral stance with a TP of ~INR15,850/share (~28x Mar’23E EPS at
a 20% discount to its 10-year LPA of 35x).
Exhibit 5: Revised estimates
(INR b)
Net Sales
EBITDA Margin (%)
PAT
EPS (INR)
Revised
121.4
14.2
13.7
463.0
FY22E
Old Change (%)
119.4
1.7
15.0
-80bp
14.2
-3.8
481.1
-3.8
Revised
136.6
15.8
16.7
565.9
FY23E
Old Change (%)
133.6
2.2
15.7
10bp
16.4
1.9
555.4
1.9
Source: MOFSL
Exhibit 6: P/E and P/B band
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
10.0
8.0
6.0
P/B (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
58.0
46.0
34.0
22.0
10.0
54.2
45.8
27.5
18.8
6.9
5.5
4.1
2.9
8.7
36.7
28.7
4.0
2.0
3.6
Source: MOFSL
Source: MOFSL
20 May 2021
4
 Motilal Oswal Financial Services
Bosch
Key operating indicators
Exhibit 7: Trend in sales
Net Sales (INR b)
0.3
7.6
12.0
3.4
-18.6
Growth (%) 24.9
12.5
-1.3
Exhibit 8: Segment mix
Fuel Injection Equipment
Starters & Generators
Others
17
8
3
26
46
17
8
-
17
8
-
16
9
-
20
11
-
23
46
FY20
Injectors & Nozzles
Power tools
20
10
-
19
50
FY21
19
-
9
22
50
18
-
9
22
51
27
48
28
47
27
47
FY16
FY17
FY18
FY19
FY20
FY21
FY22E FY23E
FY16
FY17
FY18
FY19
FY22E FY23E
Exhibit 9: Gross margin v/s EBITDA margin
EBITDA Margins (%)
16.4
46.6
19.4
48.8
18.8
49.1
46.1
17.9
17.8
44.8
15.1
46.1
40.6
Gross Margins (%)
14.2
42.0
15.8
Exhibit 10: Trend in dividend payout
Dividend Payout (%)
61.6
66.2
10.3
35.8
43.0
24.0
21.0
26.8
23.4
27.0
23.0
FY15 FY16
(15m)
FY17
FY18
FY19
FY20
FY21 FY22E FY23E
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E
(15m)
Exhibit 11: FCF and net cash
CFO (INR b)
Capex (INR b)
FCF (INR b)
Exhibit 12: Cash ~78% of capital employed in FY21
Net Cash (INR/sh)
71
58
Net Cash (as % of Cap Employed)
68
77
72
74
64
64
31.5
(4.8)
(7.5)
FY17
(2.4)
FY18
(2.7)
FY19
(5.6)
FY20
(2.5)
(4.5)
(5.0)
1,945
FY16
1,792
FY17
2,330
FY18
1,793
FY19
2,128
FY20
2,572
FY21
2,634
3,054
FY15 FY16
(15m)
FY21 FY22E FY23E
FY22E FY23E
Exhibit 13: EPS and EPS growth trend
EPS (INR)
Growth (%)
38.1
22.2
Exhibit 14: Trend in return profile
27.7
17.9
21.2
15.8
15.3
RoIC (%)
25.2
22.7
16.7
19.1
13.5
12.5
10.4
RoE (%)
24.1
19.9
13.2
14.6
11.5
(4.5)
15.0
2.1
(21.9)
(20.6)
482
FY16
460
FY17
470
FY18
540
FY19
422
FY20
335
FY21
463
566
FY16
FY17
FY18
FY19
FY20
FY21
FY22E FY23E
FY22E FY23E
Source: Company, MOFSL
Source: Company, MOFSL
20 May 2021
5
 Motilal Oswal Financial Services
Bosch
Financials and valuations
Standalone Income Statement
Y/E March
Income from Operations
Less: Excise Duty
Net Op. Revenue
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Fin. charges
Other Income
PBT bef. EO Exp.
EO Income/(Exp.)
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
FY17
1,12,426
8,074
1,04,352
7.6
19,604
18.8
4,562
15,042
272
6,174
20,945
3,711
24,656
6,904
340
29.4
17,412
14,442
-4.5
FY18
1,18,722
1,821
1,16,902
12.0
20,933
17.9
4,672
16,261
33
5,118
21,346
-939
20,407
7,016
-318
32.8
13,708
14,339
-0.7
FY19
1,20,850
0
1,20,850
3.4
21,541
17.8
4,021
17,520
133
5,953
23,340
0
23,340
7,051
355
31.7
15,934
15,934
11.1
FY20
98,416
0
98,416
-18.6
14,834
15.1
3,833
11,001
102
5,466
16,365
-8,416
7,948
3,324
-1,424
23.9
6,048
12,452
-21.9
FY21
97,180
0
97,180
-1.3
10,039
10.3
3,414
6,625
140
5,040
11,524
-5,555
5,970
1,630
-784
14.2
5,123
9,891
-20.6
FY22E
1,21,397
0
1,21,397
24.9
17,293
14.2
3,763
13,530
130
4,547
17,948
0
17,948
4,293
0
23.9
13,654
13,654
38.1
FY23E
1,36,555
0
1,36,555
12.5
21,628
15.8
4,274
17,354
130
4,765
21,989
0
21,989
5,301
0
24.1
16,688
16,688
22.2
(INR m)
Standalone Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans and Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability and Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Deferred Tax assets
Appl. of Funds
E: MOFSL estimates
FY17
314
87,691
88,005
0
88,005
23,911
8,774
15,137
1,289
39,266
57,630
11,804
11,862
17,176
16,788
30,002
13,399
4,767
11,836
27,628
4,676
87,996
-9
FY18
305
99,508
99,813
0
99,813
26,261
13,086
13,175
3,132
52,404
65,658
12,258
16,156
18,878
18,366
39,461
20,231
6,670
12,560
26,197
4,905
99,813
0
FY19
295
90,967
91,262
0
91,262
28,991
17,338
11,653
6,546
40,538
63,764
14,443
15,675
12,527
21,118
35,834
15,885
9,200
10,749
27,929
4,596
91,262
0
FY20
295
92,399
92,694
0
92,694
34,629
21,271
13,358
4,932
40,415
69,928
11,159
14,131
22,560
22,079
40,506
16,050
8,277
16,180
29,422
4,567
92,694
0
FY21
295
97,927
98,221
0
98,221
37,092
24,685
12,406
4,878
51,571
73,821
12,985
13,894
24,505
22,438
49,514
22,230
14,171
13,113
24,308
5,059
98,221
0
FY22E
295
1,07,894
1,08,189
0
1,08,189
42,970
28,448
14,521
3,500
51,571
79,867
13,304
15,965
26,319
24,279
46,329
15,687
9,712
20,930
33,539
5,059
1,08,189
0
FY23E
295
1,20,749
1,21,044
0
1,21,044
47,970
32,722
15,247
3,500
51,571
95,478
14,965
17,210
38,724
24,580
49,811
17,318
10,924
21,569
45,667
5,059
1,21,044
0
(INR m)
20 May 2021
6
 Motilal Oswal Financial Services
Bosch
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoIC
RoE
RoCE
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Working Cap. Turnover (Days)
FY17
460
605
2,803
165
35.8
34.4
26.2
5.7
4.6
24.5
1.0
253.1
21.2
15.8
23.1
4.4
1.2
41
39
47
37
FY18
470
623
3,270
100
26.8
33.7
25.4
4.8
4.0
22.2
0.6
407.6
25.2
15.3
22.8
4.5
1.2
38
50
63
23
FY19
540
677
3,095
105
23.4
29.3
23.4
5.1
3.8
21.1
0.7
2.6
22.7
16.7
24.6
4.2
1.3
44
47
48
47
FY20
422
552
3,143
105
61.6
37.5
28.7
5.0
4.5
30.0
0.7
309.2
19.1
13.5
17.9
2.8
1.1
41
52
60
25
FY21
335
451
3,331
115
66.2
47.2
35.1
4.8
4.6
44.1
0.7
176.9
12.5
10.4
12.2
2.6
1.0
49
52
83
-1
FY22E
463
591
3,669
125
27.0
34.2
26.8
4.3
3.6
25.5
0.8
36.7
19.9
13.2
17.5
2.8
1.1
40
48
47
22
FY23E
566
711
4,105
130
23.0
28.0
22.3
3.9
3.1
19.8
0.8
393.5
24.1
14.6
19.3
2.8
1.1
40
46
46
19
(INR m)
FY23E
21,989
4,274
-4,635
-5,301
276
16,603
16,603
-5,000
11,603
0
4,765
-235
0
0
-130
-3,834
0
-3,964
12,404
4,703
17,108
Standalone Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest and Finance Charges
Direct Taxes Paid
(Inc.)/Dec. in WC
CF from Operations
CF from Operating incl. EO
(Inc.)/Dec. in FA
Free Cash Flow
(Pur.)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc./(Dec.) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc./Dec. in Cash
Opening Balance
Closing Balance
FY17
24,655
4,604
-2,762
-7,246
3,848
23,099
14,567
-6,621
7,946
10,468
8,613
12,460
-20,198
-500
-32
-5,967
0
-26,697
330
959
1,289
FY18
20,406
4,672
-2,720
-6,761
4,588
20,185
17,287
-4,846
12,441
-10,620
3,763
-11,703
0
0
-6
-3,295
55
-3,246
2,338
1,289
3,627
FY19
23,410
4,045
-2,769
-7,822
-6,888
9,976
5,931
-5,854
78
15,821
7,691
17,659
-21,569
0
-60
-3,679
0
-25,308
-1,717
3,627
1,910
FY20
10,069
4,445
-2,948
-4,612
10,206
17,160
13,361
-4,243
9,118
782
-5,267
-8,729
0
0
0
-3,731
-259
-3,990
642
1,910
2,552
FY21
5,671
3,414
-2,377
-2,695
6,219
10,232
7,155
-1,938
5,217
-5,087
3,589
-3,436
0
0
0
-3,095
-287
-3,382
337
2,552
2,889
FY22E
17,948
3,763
-4,417
-4,293
-7,417
5,583
5,583
-4,500
1,083
0
4,547
47
0
0
-130
-3,686
0
-3,816
1,814
2,889
4,703
20 May 2021
7
 Motilal Oswal Financial Services
Bosch
NOTES
20 May 2021
8
 Motilal Oswal Financial Services
Bosch
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30
days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is
engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary
company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL (erstwhile
Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE)
and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities
& is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual
Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate
entities of Motilal Oswal Financial Services Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the
securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market
maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with
respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the
recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks
mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that
MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment
banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and
Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity
and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would
be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities
and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal
Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is
intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to
professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or
sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws
in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act,
the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL ,
including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by
Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons
who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with
major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and
interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a
chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be
executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered
broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading
securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services license
and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First Schedule
of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising from, or in
connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of "accredited"
institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the SFA”). Accordingly, if a Singapore person is not or ceases to be such an
institutional investor, such Singapore Person must immediately discontinue any use of this Report and inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
20 May 2021
9
 Motilal Oswal Financial Services
Bosch
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific
recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might
exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies)
discussed herein or act as an advisor or lender/borrower to such company(ies)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider
demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not
considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research
analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be
altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is
based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from
publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as
to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not
constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously,
not all customers may receive this report at the same time. MOFSL will not treat recipients as customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in
whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or
considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and
tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be
suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in
substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent
evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and
risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative
products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy,
completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the
transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to
make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to
time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and independent
of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already available in publicly
accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This
document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in
part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other
jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such
jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are
required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect,
incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically
agrees to exempt MOFSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees
responsible for any such misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the
person accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai- 400
064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI: ARN
- 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.:
INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.:
INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond,
NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered
through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk
Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market is subject to market risk,
read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law
Tribunal, Mumbai Bench.
-
20 May 2021
10