Bosch Limited

Industry Profile  :   Indian automobile industry is one of the largest and one of the most competitive in the world. In FY 15-16 production total was 23.96 million vehicle. The sector account for 7.1 per cent of GDP of India out of which 81% is Two wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 per cent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs and contribute over 12 per cent to India’s Gross Domestic Product. Maruti in Car and Hero Moto corp is in Two wheeler market are leader. Passenger Vehicle holding 13% market. Maruti Suzuki expects Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is a key market for the company, not only in terms of volumes but also as a hub of small products for exports to 92 countries. As many companies trying to increase revenue, rural Market is large for further growth. India is also being one of the leading exporter of automobiles and has strong export growth expectations for near future. In April-March 2016, overall automobile exports grew by 1.91 per cent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 per cent, 16.97 per cent, and 0.97 per cent respectively in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion during the period April 2000 to September 2016, according to data released by Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars for India.

Company Profile : Founded in 1951, it is flagship company of Bosch group. Headquarter in Bangalore of Bosch, Indian subsidiary of foreign company, is India’s leading supplier of technology and services to mainly in the areas of automotive and industrial technology, consumer goods and building technology. India is one of the important market as the company has the largest development center, outside Germany, for end to end engineering and technology solutions. the company is keeping manufacturing facilities in many cities of India. at Bangalore, Naganathapura (near Bangalore), Nashik, Jaipur and Goa. Its Automotive Technology division includes Diesel and Gasoline Fuel Injection Systems, Car Multimedia Systems, Auto Electricals and Accessories, Starters and Generators, Energy and Body Systems. Its Industrial Technology division includes Packaging Machines, Special Purpose Machines, Solar Energy and its consumer goods and building Technology division includes power tools, security system.

Shareholding Pattern  :   The Bosch Group holds 70.49% stake in Bosch Limited, out of which partly owned by Indian  private limited company. 3.19% owned by Mutual Funds. 0.1% held by Financial Institutions. 9.27% held by Insurance Companies. 7.37% held by foreign investors. Remaining is held by public.

Financials and Ratios  :  

 December 11December 12December 13March 15 March 16March 17
Revenue8,486.109,028.309,172.7012,650.8010,995.4011,052.60
Net profit1,122.70 958.30884.701,337.701,245.901,741.10
Net Profit Margin13.7411.0610.0311.0611.7316.68
EPS358305282426397561
Book value1,505.861,774.942,004.552,339.812,639.752,885.11
Dividend per share13560558585165
Dividend payout37.7519.6519.5219.9521.4228.47
ROE23.7417.1914.0518.2015.0319.78
ROCE21.7315.9513.1716.9713.1718.98
ROA15.7412.129.9112.8210.8314.75
Debt to equity0.050.030.020.0100
asset turnover114.51109.5798.86115.8692.2588.43

Future Prospects  :  Being leader in segment and foreign company, the growth of the company was not  good in recent  time. Demonetisation and GST was bad for industry and now the sector is coming out. As the company is dependent on Automobile sector and as the growth of the sector is important for India as one of the leading sector in employment generation. Management i confident as achieving for growth in FY 19. Fundamentals are very good and so the company is Portfolio company even at current level.

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About Ashutosh

Tracking Indian Capital Market since 2014. Finance Student, Love to write about Finance and investing