Bosch Ltd.
NSE: BOSCHLTDBosch Ltd.: A 30-second snapshot
Bosch Ltd, the NSE-listed auto components supplier, trades at ₹36,705 with a trailing PE of 39.0 — the highest valuation among six tracked Auto-sector peers — against a 5-year earnings growth rate of just 3% and an ROE of 19.4% that has exceeded 15% in only 2 of the available historical years. The stock is 0.25% below its 200-DMA and 12.5% off its 52-week high, with RSI at 52.7 (neutral) and a 14.5% gain over the past 12 months.
P/E
39.0
Forward P/E
33.0
ROE
+19.4%
Debt / Equity
0.80
Profit Margin
+13.8%
Div. Yield
+0.7%
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
54/100
News
8 headlines · 2 positive · 1 negative
BOSCHLTD: Revenue up 10.8% YoY, PAT margin at 13.8%, and INR 270/share dividend recommended - TradingView
TradingView
Bosch's (NSE:BOSCHLTD) Promising Earnings May Rest On Soft Foundations - simplywall.st
simplywall.st
Bosch Ltd stock (INE323A01026): recent earnings and outlook for the Indian auto supplier - AD HOC NEWS
AD HOC NEWS
Bosch : Letter to SE dated 29.05.2026 – Intimation of Investors Meet - marketscreener.com
marketscreener.com
Does Bosch (NSE:BOSCHLTD) Deserve A Spot On Your Watchlist? - simplywall.st
simplywall.st
Recent context
- ·Q-results reported revenue up 10.8% YoY and PAT margin at 13.8%, with a ₹270/share dividend recommended — the dividend represents a yield of approximately 0.74% at current prices.
- ·A simplywall.st report published in late May 2026 questioned whether Bosch's promising earnings rest on soft foundations, raising concerns about earnings quality that align with the observed earnings-revenue growth gap in the 5-year data.
- ·Bosch filed an investors meet intimation with stock exchanges on 29 May 2026, suggesting upcoming management communication to investors.
Strengths
- +Revenue has compounded at 18% over 5 years, indicating sustained top-line expansion for the auto components business.
- +FCF was positive in 4 of the available years, and the consistency score of 63 reflects reasonable financial discipline relative to the sector.
- +ROE of 19.4% is the third-highest among the 6 Auto peers tracked (behind Bajaj Auto at 28.1% and Eicher Motors at 23.8%), positioning it above mid-sector.
- +Forward PE of 33.0 represents a meaningful compression from the trailing PE of 39.0, suggesting the market is pricing in an improvement in near-term earnings.
Weaknesses
- −5-year earnings growth of 3% lags the 18% revenue CAGR substantially, indicating that revenue expansion has not translated into proportional profit growth — a divergence that weakens the justification for a sector-leading PE of 39.0.
- −ROE has exceeded 15% in only 2 of the available historical years, and debt trend is rising (D/E 0.8), indicating that return consistency and balance-sheet trajectory are both below what the valuation premium would imply.
- −Quality score of 45 ranks 4th of 6 Auto peers, with Eicher Motors (66), Bajaj Auto (55), and M&M (52) all scoring higher; BOSCHLTD commands the highest PE while sitting below median on quality.
- −Price sits marginally below the 200-DMA (₹36,797) with a -12.5% drawdown from the 52-week high, and the nearest resistance cluster begins at ₹36,750 — the stock has not yet definitively re-established above its long-term moving average.
Open questions
- ?Does the 18% revenue CAGR alongside a 3% earnings CAGR reflect a temporary cost cycle, structural margin erosion, or accounting-level differences in how growth is captured — and is there evidence of which it is from segment disclosures?
- ?How much of the ROE of 19.4% is driven by financial leverage (D/E 0.8 and rising) versus operational efficiency, and how does the ROE picture change if leverage is held constant?
- ?At a trailing PE of 39.0 versus the auto sector median of approximately 27–35, what rate of earnings growth over the next 3–5 years would be required to justify the current valuation premium relative to peers like Eicher Motors or Bajaj Auto?
- ?Given that analyst coverage is limited to 4 analysts with a mean rating of 2.5 on a 1–5 scale, how might the consensus picture shift if broader institutional coverage were added — and what is the basis for the limited coverage on a ₹36,000+ stock?
Peer comparison: Auto
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BOSCHLTD | Bosch Ltd.You're viewing | 39.0 | +19.4% | 45 |
| Industry avg | across 5 peers | 27.4 | +16.8% | 44 |
| EICHERMOT | Eicher Motors Ltd. | 35.3 | +23.8% | 66 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.0 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 19.5 | +18.8% | 52 |
| MARUTI | Maruti Suzuki India Ltd. | 27.7 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹36,705.00
SMA 50
₹35,134.10
SMA 200
₹36,796.65
RSI (14)
52.7 (neutral)
From 52w high
-12.5%
1Y return
+14.5%
3M return
+3.9%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of 3% materially lags 5-year revenue growth of 18%, implying severe margin compression or rising cost structure over the period. Profit margin currently stands at 13.84%, and earnings per share growth has not kept pace with top-line expansion — a structural divergence that undermines the basis for a trailing PE of 39.0.
- mediumTrailing PE of 39.0 is the highest among the 6 Auto-sector peers tracked (Eicher Motors 35.3, Bajaj Auto 27.0, Maruti 27.7, M&M 19.5). Quality score of 45 ranks 4th of 6 peers. ROE exceeded 15% in only 2 of the available years, and debt trend is rising (D/E 0.8). The combination of sector-leading valuation with mid-pack quality metrics and low ROE consistency is a notable divergence.
- mediumPrice of ₹36,705 sits 0.25% below the 200-DMA (₹36,797) at the time of this data snapshot. While the stock is above the 50-DMA (₹35,134), it has not sustainably reclaimed the long-term moving average; drawdown from 52-week high is -12.5%. Nearest resistance cluster starts at ₹36,750.
- lowAnalyst coverage is thin: mean rating of 2.5 across only 4 analysts (1–5 scale, lower = more constructive). With a sample size of 4, the consensus figure carries limited statistical weight and should be interpreted cautiously.
- lowOne negative-sentiment headline questions whether Bosch's reported earnings rest on soft foundations, raising concerns about earnings quality. Total news volume is 8 items — adequate but not deep coverage.
Cross-section contradictions
- Revenue grew at an 18% 5-year CAGR while earnings grew at only 3% over the same period, yet the stock trades at a trailing PE of 39.0 — the highest among 6 sector peers. A PE premium typically accompanies faster earnings growth, not a structural earnings-revenue gap of this magnitude.
- Price is up 14.5% over 12 months and above the 50-DMA, suggesting positive medium-term price momentum, yet the stock remains fractionally below the 200-DMA and carries the weakest earnings growth rate among the tracked peers — price performance has outpaced the underlying earnings trajectory.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days