Bosch share price falls below Rs 50K mark after stock split, bonus issue and Q2 results

Bosch share price declined nearly 4% in Monday's trading session, slipping below the Rs 50,000 mark despite the company's announcement of a stock split and bonus issue alongside a strong set of September-quarter results for FY27.

The stock witnessed selling pressure amid weakness in the broader market. Domestic benchmark indices opened lower on Monday as investors booked profits following the recent rally, while heavyweight IT stocks came under pressure. The BSE Sensex dropped 93.95 points to 80,919.19 in early trade, whereas the NSE Nifty declined 30 points to 24,968.80.

Bosch shares opened at Rs 50,985 on the NSE, compared with their previous closing price of Rs 50,800 during Sunday's Muhurat trading session. The stock subsequently touched an intraday low of Rs 49,100 on November 9, falling below the psychologically important Rs 50,000 level. It had closed at Rs 50,990 in the previous session.

Stock split and bonus issue 

Bosch's board of directors has approved a stock split in the ratio of 1:5. Under the proposed arrangement, each existing equity share with a face value of Rs 10 will be divided into five equity shares with a face value of Rs 2 apiece.

The stock split is subject to shareholders' approval through a postal ballot.

Following the stock split, the company will implement a bonus issue in the ratio of 3:1. Under this arrangement, eligible shareholders will receive three additional fully paid-up equity shares of Rs 2 each for every existing share of Rs 2 held on the record date.

In effect, an investor holding one Bosch share before the corporate actions will have five shares following the split. The subsequent bonus issue will add another 15 shares, taking the total holding to 20 shares.

The combined impact of the two corporate actions will increase the number of shares held by existing investors without changing the underlying value of their investment solely because of the split and bonus issue.

Bosch Q2 FY27 results

Bosch reported an 18.6% year-on-year increase in consolidated net profit to Rs 839.4 crore in Q2 compared with Rs 708 crore in the corresponding quarter last year. The reported profit includes a one-time gain of Rs 130 crore. Revenue from operations increased 28.2% to Rs 7,655 crore in Q2 FY27 against Rs 5,969 crore in the year-ago period.

Operating performance also remained strong, with earnings before interest, tax, depreciation and amortisation (EBITDA) rising 23.2% year-on-year to Rs 1,037 crore from Rs 842 crore in Q2 FY26.

However, EBITDA margin contracted to 13.5% in the September quarter from 14% in the corresponding period last year, indicating some pressure on operating profitability despite healthy revenue and EBITDA growth.

Bosch share price targets 

Brokerage Motilal Oswal said that due to weaker-than-expected margins in Q2 in the standalone business and margin headwinds in the RBIC business. "We cut our FY27 earnings estimate by 6%. We project Bosch to clock a 27%/35%/20% CAGR in revenue/EBITDA/PAT over FY26-28. However, the stock at 51x/44x FY27E/FY28E appears fairly valued. We reiterate our Neutral rating with a target price of Rs 47,200 (based on ~41x FY28E EPS)," said the brokerage.

ICICI Securities said Bosch India (BOS)’s Q2FY27 EBITDA was tad below its estimate. "Impact on profitability was due to Raw Material inflation and adverse forex impact. Nevertheless, Bosch remains one of top picks in the auto ancillaries’ space."

"We raise FY27-29E revenue by 2% but cut FY27/28E EBITDA by 2% as pass-through of inflationary costs could be gradual. Maintain BUY; TP revised to Rs 62,500 (vs. Rs 57,500), based on 45x FY29E EPS," added the brokerage.

About Bosch

Bosch Ltd. is a major supplier of technology and services, serving as the flagship listed entity of the Bosch Group in India. The company operates across four primary business sectors: Mobility, Industrial Technology, Consumer Goods, and Energy and Building Technology