Bosch . Downgraded to 'Hold' by MarketsMOJO, Short Term Growth Positive

Bosch ., a leading auto ancillary company, has recently been downgraded to a 'Hold' by MarketsMOJO on November 11, 2024. This decision was based on the company's low Debt to Equity ratio, which is currently at 0 times.
However, the company has shown positive results for the last 6 consecutive quarters, with its operating cash flow at a high of Rs 1,252.80 crore and a growth of 27.61% in its profit after tax. Its return on capital employed is also at a high of 19.74%.

Technically, the stock is in a mildly bullish range with multiple factors such as MACD, Bollinger Band, KST, and DOW indicating a bullish trend. Additionally, the company has a high institutional holding of 21.76%, which shows that these investors have better resources and capabilities to analyze the company's fundamentals compared to retail investors.

In terms of performance, Bosch . has outperformed the BSE 500 index in the long term as well as the near term. In the last 1 year, the stock has generated a return of 78.78% and has also outperformed the index in the last 3 years, 1 year, and 3 months. With a market capitalization of Rs 1,03,519 crore, it is the second largest company in the auto ancillary sector, constituting 17.09% of the entire sector. Its annual sales of Rs 16,885.50 crore make up 5.49% of the industry.

However, the company has shown poor long term growth as its operating profit has only grown at an annual rate of 1.20% over the last 5 years. Its return on equity is also at a high of 15.3, indicating an expensive valuation with a price to book value of 8.6. The stock is currently trading at a premium compared to its average historical valuations. While the stock has generated a high return of 78.78% in the past year, its profits have only risen by 27.1%, resulting in a PEG ratio of 2.

Overall, while Bosch . has shown positive results in the short term, its long term growth and valuation may be a cause for concern. Investors are advised to hold onto their stocks and monitor the company's performance closely.