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Time of India
4 days ago
- Automotive
- Time of India
I-Sec upgrades Bosch to Hold, raises target price to Rs 30,000
ICICI Securities has upgraded Bosch to Hold, revising the target price to Rs 30000. The upgrade is supported by Bosch India's Q4FY25 performance, with revenue growth driven by the mobility segment and stable EBITDA margins. Technological and regulatory changes are expected to increase the company's content per vehicle in the medium to long term. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads (Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.) ICICI Securities has upgraded Bosch to Hold from reduce with a revised target price of Rs 30000 (earlier Rs 25,130). The current market price of Bosch is Rs incorporated in 1951, is a Large Cap company with a market cap of Rs 92521.55 crore, operating in the Auto Ancillaries key products/revenue segments include Automotive Products, Consumer Durables, Others, Sale of services, Rental Income, Other Operating Revenue, Export Incentives, Scrap for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 5147.40 crore, up 10.59% from last quarter Total Income of Rs 4654.70 crore and up 15.43 % from last year same quarter Total Income of Rs 4459.50 crore. The company has reported net profit after tax of Rs 553.60 crore in the latest company's top management includes Bhattacharya, Mudlapur, Mr.N Sandeep, Grosch, Ravichandar, Mr.S V Ranganath, Katragadda, Kumar Goenka, Khare, Bhattacharya, Gilges, Mudlapur, Mr.N Sandeep, Grosch, Ravichandar, Mr.S V Ranganath, Katragadda, Kumar Goenka, Khare, Gilges. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 3 crore shares India?s (BOS) Q4FY25 EBITDAM of 13.2% (flat YoY) was in line with consensus estimate. Gross margin improvement of ~300bps was offset by higher other expenses. Revenue grew 16% YoY in Q4 to INR 49bn led by growth in mobility segment (mainly in tractor and PC segments). EBITDA margin at 13.2% was largely in line with consensus estimates, with share of traded goods declining to ~40% in Q4, led by localisation efforts. In medium to long term, technological and regulatory changes, including TREM V norms, are expected to increase the company?s content per vehicle. ICICI Securities has upgraded it to HOLD from Reduce with DCF-based revised target price of Rs 29,950 (earlier: Rs 25,130), implying 35x FY27E EPS, with EPS CAGR of ~12% over held 70.54 per cent stake in the company as of 31-Mar-2025, while FIIs owned 6.09 per cent, DIIs 15.97 per cent.
Economic Times
4 days ago
- Automotive
- Economic Times
I-Sec upgrades Bosch to Hold, raises target price to Rs 30,000
ICICI Securities has upgraded Bosch to Hold from reduce with a revised target price of Rs 30000 (earlier Rs 25,130). The current market price of Bosch is Rs 31450.95. ADVERTISEMENT Bosch, incorporated in 1951, is a Large Cap company with a market cap of Rs 92521.55 crore, operating in the Auto Ancillaries sector. Bosch's key products/revenue segments include Automotive Products, Consumer Durables, Others, Sale of services, Rental Income, Other Operating Revenue, Export Incentives, Scrap for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 5147.40 crore, up 10.59% from last quarter Total Income of Rs 4654.70 crore and up 15.43 % from last year same quarter Total Income of Rs 4459.50 crore. The company has reported net profit after tax of Rs 553.60 crore in the latest quarter. The company's top management includes Bhattacharya, Mudlapur, Mr.N Sandeep, Grosch, Ravichandar, Mr.S V Ranganath, Katragadda, Kumar Goenka, Khare, Bhattacharya, Gilges, Mudlapur, Mr.N Sandeep, Grosch, Ravichandar, Mr.S V Ranganath, Katragadda, Kumar Goenka, Khare, Gilges. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 3 crore shares outstanding. Investment Rationale ADVERTISEMENT Bosch India?s (BOS) Q4FY25 EBITDAM of 13.2% (flat YoY) was in line with consensus estimate. Gross margin improvement of ~300bps was offset by higher other expenses. Revenue grew 16% YoY in Q4 to INR 49bn led by growth in mobility segment (mainly in tractor and PC segments). EBITDA margin at 13.2% was largely in line with consensus estimates, with share of traded goods declining to ~40% in Q4, led by localisation efforts. In medium to long term, technological and regulatory changes, including TREM V norms, are expected to increase the company?s content per vehicle. ICICI Securities has upgraded it to HOLD from Reduce with DCF-based revised target price of Rs 29,950 (earlier: Rs 25,130), implying 35x FY27E EPS, with EPS CAGR of ~12% over FY25-27E. Promoter/FII Holdings Promoters held 70.54 per cent stake in the company as of 31-Mar-2025, while FIIs owned 6.09 per cent, DIIs 15.97 per cent. (You can now subscribe to our ETMarkets WhatsApp channel) Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.
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Business Standard
23-04-2025
- Automotive
- Business Standard
M&M shares rally 10% in 4 days on healthy outlook. Buy, Sell, Hold?
M&M share price today: Mahindra & Mahindra (M&M) shares have gained 3 per cent to ₹2,899.90 on the BSE in Wednesday's intra-day trade. The stock of the passenger cars & utility vehicles maker is quoting higher for the fourth straight trading day, surging 10 per cent during the period. In the past nine trading days, it has rallied 16 per cent. M&M share past price movement Shares of M&M had hit a record high of ₹3,276.30 on February 10, 2025. Currently, the stock is trading 11 per cent lower from its record high price. In the past one year, M&M has outperformed the market by soaring 40 per cent. In comparison, the BSE Sensex was up 8 per cent, while the BSE Auto index was down 0.4 per cent. Tractor industry performance The tractor industry has been witnessing good momentum on account of favorable weather conditions, good reservoir levels, strong Rabi outlook and positive terms of trade for farmers. The harvest season has commenced in the northern regions and is expected to progress smoothly across the country. Delivery momentum picked up in the last week of March on account of festivities and momentum is expected to continue in the June quarter (Q1FY26) on expectations of a very good Rabi crop harvest and improved cash flow in the hands of the farmers. Also Read: Outlook of Domestic Farm Equipment Industry According to media reports based on a Crisil Ratings note, India's domestic tractor sales are projected to reach a record 975,000 units in financial year 2025-26 (FY26), growing at 3-5 per cent year-on-year (YoY), driven by higher minimum support prices for key cash crops, robust replacement and construction demand, and optimism over an above-normal monsoon. The industry is entering a ₹4,000-crore capex cycle as capacity utilisation nears 75-80 per cent, with manufacturers preparing for the stricter TREM V emission norms effective April 2026, which are expected to increase tractor prices by 10-20 per cent depending on engine capacity and may spur pre-buying before the new rules take effect. Also Read: Brokerage views – ICICI Securities, Motilal Oswal Financial Services Despite the changes for TREM V emission norms (implementation date still uncertain), tractor makers are well-positioned with stable operating margins of 13-13.5 per cent, low debt, and strong liquidity, enabling them to invest in capacity expansion and cleaner technologies. According to ICICI Securities, overall, the projected growth is sentimentally positive for M&M given its industry leadership in domestic tractor space (market share: ~44 per cent). Key monitorable would be the industry players' commentary and associated volume growth guidance during Q4FY25 conference calls, the brokerage firm said in a note. The brokerage firm expects M&M to continue its strong performance led by its robust Utility Vehicle (UV) portfolio, market share gains in both Sports Utility Vehicles (SUVs) and tractors, improving margin trajectory, and better outlook in Farm Equipment Sector (FES). Analysts have a 'buy' rating on M&M with a target price of ₹ 3,220 per share. Motilal Oswal Financial Services believes M&M is well placed to outperform across its core businesses, driven by a healthy recovery in rural and new product launches in both UVs and tractors. While M&M has outperformed its own targets of earnings growth and RoE of 18 per cent in FY24, it remains committed to delivering 15-20 per cent EPS growth and 18 per cent ROE, ensuring sustained profitability and shareholder value, the brokerage firm had said in Q3 result update. About Mahindra Founded in 1945, the Mahindra Group is one of the largest and most admired multinational federation of companies with 260,000 employees in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India and is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.
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Business Standard
21-04-2025
- Automotive
- Business Standard
Monsoon tailwinds, MSP hike to drive tractor sales in FY26: CRISIL
Riding on an expected above-normal monsoon, increased minimum support prices (MSPs) for key crops, and rising replacement and construction demand, domestic tractor sales are projected to reach a record high of approximately 9.75 lakh units in financial year 2026. This would mark a 3–5 per cent year-on-year growth. A recent analysis by CRISIL Ratings indicates that this surge in demand will likely propel sales beyond the previous peak of 9.45 lakh units achieved in FY23, sustaining the consistent volume expansion witnessed since FY19. This projection follows a healthy 7 per cent increase in tractor sales in FY25, according to the Crisil report. In contrast, tractor retail sales dipped, with FY25 ending at 8,83,095 units—down 1.04 per cent from 8,92,410 units in FY24, as per data from the Federation of Automobile Dealers Associations (FADA). Analysts attribute the expected turnaround in FY26 to favourable macro and agri-linked factors. 'The India Meteorological Department's forecast of an above-normal monsoon should lift rural sentiment and reinforce farmer confidence,' said Anuj Sethi, senior director, Crisil Ratings. 'This, along with the expected rise in MSP for key cash crops and a pick-up in construction activity, should help drive tractor volumes higher this year.' Another factor expected to boost sales is the anticipated implementation of Bharat TREM V emission norms from April 1, 2026. With prices likely to rise 10–20 per cent post-implementation, depending on horsepower, a wave of pre-buying is expected in the final quarter of FY26—similar to what was observed when TREM IV norms were rolled out in January 2023. Tractors in the 41–50 HP range, which account for over 60 per cent of industry volumes, are expected to remain dominant, especially as farmers remain price-sensitive. During the TREM IV phase, many buyers shifted to lower HP models to avoid price hikes. Despite the regulatory headwinds, Crisil expects operating margins for manufacturers to remain stable at 13.0–13.5 per cent in FY26, due to easing input costs and healthy volumes. This stability provides a cushion for investments in capacity expansion and emission control technologies. 'With capacity utilisation nearing 75–80 per cent and the TREM V transition ahead, OEMs are likely to enter a strategic capex cycle of around Rs 4,000 crore. Yet, the capex-to-Ebitda ratio will remain lean, under 0.25 times, reflecting the sector's financial strength,' said Poonam Upadhyay, director, Crisil Ratings. Agriculture continues to drive 70–75 per cent of tractor demand, with the rest coming from construction and infrastructure activity—sectors set to benefit from government allocations in the Union Budget. However, analysts caution that the final outcome will depend on several evolving factors, including the spatial and temporal distribution of monsoon rains, movement in commodity prices, interest rate trends, and the timely implementation of emission regulations.
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Business Standard
21-04-2025
- Automotive
- Business Standard
Tractor sales in FY26 to hit record 975K units, ₹4K cr capex likely: Crisil
Higher minimum support prices for key cash crops, better replacement and construction demand amid hopes of above-normal monsoon are likely to drive domestic tractor sales to hit an all-time high of around 975,000 units in 2025-26, growing at 3-5 per cent, according to Crisil Ratings. A strategic capex cycle worth ₹4,000 crore is around the corner in the Indian tractor industry with capacity utilisation nearing optimal levels of 75-80 per cent and the push for cleaner technologies under TREM V, the analytics firm said in a statement. The emission norm of 'TREM V' is expected from April 1, 2026, pre-buying towards fiscal-end may also provide a fillip to volume, it added. "As a result, tractor sales this fiscal year are expected to surpass the peak of 945,000 units achieved in fiscal 2023, sustaining the back-to-back volume growth seen during fiscal 2019," it noted. There was a healthy 7 per cent increase in sales in FY25, Crisil Ratings said. The Indian Meteorological Department's forecast of above-normal monsoon should lift rural sentiment and reinforce farmer confidence, which is crucial for driving farm investments such as tractors, Crisil Ratings Senior Director, Anuj Sethi said. "This, along with the expected rise in MSP for key cash crops, and pick-up in construction activity, especially roads, supported by sizeable government allocation in the Union Budget for this fiscal, should help drive 3-5 per cent volume growth for tractors this fiscal," he noted. Besides, Sethi said, "the anticipated TREM V-driven price hikes from April 2026 could trigger pre-buying in the last quarter of fiscal 2026, providing a boost to volume." Crisil said the rollout of stricter emission norm TREM V across all horsepower (HP) segments is expected to increase tractor prices 10-20 per cent, depending on engine capacity. A similar trend played out post the TREM IV, which was implemented on January 1, 2023, when above-50 HP tractor sales dropped, and farmers pivoted to 41-50 HP models -- the dominant segment with 64 per cent share -- highlighting their sensitivity to price hikes, it added. Rising volumes and easing input costs should keep the operating margin of manufacturers stable at 13.0-13.5 per cent this fiscal, in line with the past two fiscals. With strong cash flow, low debt and robust liquidity, tractor makers are well-positioned to invest in capacity and upgrade emission control technologies, it added. Crisil Ratings Director, Poonam Upadhyay said tractor manufacturers have entered FY26 on a strong footing with margins stable at 13-13.5 per cent on softer input costs and sustained volume growth. "With capacity utilisation nearing optimal levels of 75-80 per cent and the push for cleaner technologies under TREM V, a strategic capex cycle is around the corner, worth ₹4,000 crore," Upadhyay said. Crisil Ratings, however, said the spatial and temporal distribution of monsoon and its impact on agriculture and rural incomes, movement in commodity prices and interest rates, and implementation of emission norms will remain monitorables over the medium term.
