Bosch share price has delivered multibagger returns of 147% in five years.AI Quick ReadBosch share price gained over 2% in early trade on Thursday, after the company approved the acquisition of a 100% stake in Bosch Chassis Systems India Private Limited (BCSI) for ₹9,068.68 crore. Bosch shares rose as much as 2.7% to ₹36,912.35 apiece on the BSE.
Bosch Ltd on Wednesday approved buying 100% stake in Bosch Chassis Systems India Private Limited (BCSI) from Robert Bosch Investment Nederland B.V. and Robert Bosch LLC for ₹9,068.68 crore, through a mix of cash and equity.
Bosch will issue 2,460 equity shares on a preferential basis along with a cash payment. The company will issue 1,230 shares each to Robert Bosch Investment Nederland B.V. and Robert Bosch LLC. The remaining amount will be paid in cash.
The deal is expected to be completed on or before July 7, 2026.
The acquisition will enable Bosch to transition from selling individual mechanical components to providing an enhanced range of solutions to OEMs.
The acquisition, valued at nearly ₹9,069 crore, is based on 10.6x FY25 EV/EBITDA, and suggests the deal is attractively priced for minority shareholders when compared to the listed entity (trading at 40.6x FY26E EV/EBITDA), according to Motilal Oswal.
As per the company, this acquisition will lead to EPS accretion of 5% on FY25 basis. The deal is expected to be completed by Q1FY27.
“We have now incorporated RBIC into our estimates w.e.f FY27E, which leads to a 5% and 7% earnings upgrade for FY27E and FY28E. While this acquisition is favoring minority shareholders, Bosch stock has already rallied almost 19% in the last three trading sessions and now appears fairly valued at 40x/35.7x FY27E/FY28E EPS,” said the brokerage firm.
Motilal Oswal maintains a ‘Neutral’ stance for Bosch shares with a revised target price of ₹35,323 apiece, valued at 36x Dec’27E EPS.
Bosch share price rallied 14% in one month and has remained flat on a year-to-date (YTD) basis. The stock has fallen over 6% in six months, while it rallied 37% in one year. Over the past three years, Bosch share price jumped 91% and has delivered multibagger returns of 147% in five years.
At 9:25 AM, Bosch share price was trading 1.50% higher at ₹36,480 apiece on the BSE.
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