Bosch (BOSCHLTD)
StalwartFairStock Score: 59/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹47,100 |
| Market Cap | ₹1,38,926.63 Cr |
| P/E Ratio | 58.82 |
| ROCE | 21.11% |
| ROE | 19.94% |
| Dividend Yield | 0.57% |
| Profit Growth | -36.7% |
| Debt/Equity | 0.01 |
| Sales Growth | 22% |
| Free Cash Flow | ₹418 Cr |
| Promoter Holding | 70.54% |
| 52-Week Range | ₹28,610 — ₹50,000 |
| Sector | Auto Components |
| Book Value | ₹5,033.36 |
Strengths
- Elite profitability: ROE 19.94% and ROCE 21.11% with negligible debt (D/E 0.01).
- Strong financial health: Piotroski F-Score 8/9 and Altman Z-Score 5.22.
- High promoter holding of 70.54% aligns long-term interests.
- Consistent compounding: 5-year revenue CAGR 13.23% and latest profit growth 36.13%.
Concerns
- Valuation is extremely rich: P/E 46.5, P/B 7.99, EV/EBITDA 23.69 and PEG 4.09.
- No margin of safety: price of ₹37,435 is far above Graham Number ₹9,922 and DCF intrinsic value ₹2,282.
- Free cash flow of ₹418 Cr looks weak relative to latest quarterly net profit of ₹532 Cr.
- Profit growth outpacing sales could be cyclical, not durable.
AI Analysis
Let's look at Bosch not as a ticker but as a business. It earns a 19.94% return on equity and 21.11% on capital, with almost no debt — D/E 0.01. That is the hallmark of a company with pricing power and a franchise. Promoters own 70.54%, so interests are aligned. The Piotroski score of 8 and Altman Z of 5.22 tell me the balance sheet is fortress-like. Sales have compounded at 13.23% over five years; latest year profit grew 36.13% on 11.31% sales growth — nice operating leverage. As a business, this is exactly the kind of steady compounder I like to own. But price matters. At ₹37,435, I am paying 46.5 times earnings, 8 times book and 23.7 times EV/EBITDA. That is not a bargain; that is an expensive quality story. Graham would shake his head: the Graham Number is ₹9,922 and the DCF value ₹2,282 — both far below today's price. The margin of safety is negative 267%. Even the PEG ratio of 4.09 tells me the growth is already more than priced in. Free cash flow of ₹418 Cr is surprisingly thin against a quarterly profit of ₹532 Cr, so I'd want to understand the cash conversion before paying such a premium. I won't say Bosch is a bad business. It is a good business, maybe a great one. But a great business at too high a price can be a poor investment. Value investors earn their returns by demanding a margin of safety. Here, the market is pricing perfection. I'd rather wait for a better price than chase quality at any cost.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer