Equity Analyst, LightStream Research

Aqila Ali

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul class=""><li><a href="https://www.smartkarma.com/entities/6143" target="_blank" data-smartkarma-citation="entities:6143:1">Bosch Ltd (BOS IN)</a> Mobility Solutions Business (85% of total revenue as of FY2017) reported strong growth in revenue during the latest quarter (8.8% growth in 2QFY18), with the majority of the growth coming from the Gasoline System (31%) and the Diesel System (27%) divisions. We expect revenue to see strong double-digit growth over the next few years supported by the stricter emission standards proposed by the Government of India (BS IV to BS VI by April 2020, Skipping BS V).</li><li>The company’s focus on Electromobility Solutions for the long term is likely to provide the company with a competitive edge. Bosch believes conventional engines will see strong growth in the medium term, while it prepares for electromobility solutions in the long-term, eyeing India as ‘a great incubator for an Electric future’. </li></ul><ul><li>We believe the OPM could weaken over the next two to three years because of the company’s shift in product mix and required for the proposed shift in the emission standards.</li></ul><ul class=""><li>Bosch India’s FY1 PE multiple of 36.5x is expensive, but should fall in line with peers if significant increases in earnings take place over the next two to three years.</li></ul>

Bosch Ltd (BOS IN) Mobility Solutions Business (85% of total revenue as of FY2017) reported strong growth in revenue during the latest quarter (8.8% growth in 2QFY18), with the majority of the growth coming from the Gasoline System (31%) and the Diesel System (27%) divisions. We expect revenue to see strong double-digit growth over the next few years supported by the stricter emission standards proposed by the Government of India (BS IV to BS VI by April 2020, Skipping BS V).The company’s focus on Electromobility Solutions for the long term is likely to provide the company with a competitive edge. Bosch believes conventional engines will see strong growth in the medium term, while it prepares for electromobility solutions in the long-term, eyeing India as ‘a great incubator for an Electric future’. We believe the OPM could weaken over the next two to three years because of the company’s shift in product mix and required for the proposed shift in the emission standards.Bosch India’s FY1 PE multiple of 36.5x is expensive, but should fall in line with peers if significant increases in earnings take place over the next two to three years.

Bosch India Mobility Business: Bharath Stage (BS) Reforms To Drive Medium-Term Growth