Bosch has been given a Neutral rating by Motilal Oswal, with a target price of INR 34,280.
The company's performance in the second quarter of FY25 exceeded expectations due to lower raw material costs driven by reduced traded goods.
However, Bosch is facing challenges in the weak auto demand, particularly in the CV and PV segments.
The efforts to localize new technologies are expected to take time, which will continue to put pressure on margins with limited visibility for improvement in the near term.
Motilal Oswal has not changed its earnings per share estimates for FY25 and FY26, and believes that the stock is fairly valued at its current level.