BOSCHLTD

Rallies on RBIC Acquisition Plans

’s shares have surged nearly 30% in April, rebounding from a March low of ₹28,745. The rally follows the resumption of natural gas supplies disrupted by the West Asia war and the company’s announcement to fully acquire Bosch Chassis Systems India (RBIC). The deal strengthens Bosch’s transition from component supply to integrated solutions, expands its product portfolio, and enhances investor confidence. Acquisition Details Enterprise value: ₹9,069 crore. Structure: largely cash-funded, with limited equity issuance. Funded via internal accruals, preserving Bosch’s debt-free status. Expected to be EPS accretive by 5% from FY25 levels. Analysts highlight attractive valuation: implied FY25 EV/EBITDA multiple of 10.6x, well below peers like Endurance Technologies (~21x). RBIC Performance Revenue (9MFY26): ₹3,533 crore (~25% of Bosch’s revenue). Revenue CAGR FY23–FY25: 17%, vs. Bosch’s 10%. EBITDA margin: improved from 12.8% in FY23 to 19.3% in FY25. Incred Research projects 21% PAT CAGR to ₹970 crore (FY25–FY28), lifting combined entity’s PAT CAGR from 12% to 14.5%. Strategic Impact Strengthens Bosch’s presence in braking and safety systems, complementing its powertrain portfolio. Enhances positioning in electric vehicles (EVs), as RBIC products are compatible with both ICE and EV platforms. Bosch also announced a JV with Tata AutoComp Systems to produce EV parts, reinforcing diversification. Anti-lock braking system (ABS) mandate offers additional upside potential. Valuation & Outlook Shares trade at ~40x FY27E earnings. Current rally reflects RBIC growth prospects, but near-term upside may be capped. Diversification beyond powertrain, margin accretion, and improved return ratios support potential re-rating.