Bosch Ltd (MICO) - ICICI Direct

ICICIdirect.com Research coverage universe (Auto & auto ancillaries)CMPM Cap EPS (|) P/E (x) EV/EBITDA (x) RoCE (%)RoE (%)Sector / Company (|) TP(|) Rating (| Cr) FY13E FY14E FY15E FY13E FY14E FY15E FY13E FY14E FY15E FY13E FY14E FY15E FY13E FY14E FY15EAmara Raja (AMARAJ) 313 300 Hold 5,353 16.8 20.6 23.1 18.7 15.2 13.6 9.7 8.3 6.9 33.6 34.0 32.3 27.1 26.3 24.0Apollo Tyre (APOTYR) 70 76 Hold 3,539 12.2 16.5 15.8 5.8 4.2 4.4 3.8 3.2 2.9 18.7 19.1 17.8 18.0 19.9 16.1Ashok Leyland (ASHLEY) 16 16 Hold 4,138 1.6 0.1 1.4 9.5 161.0 11.3 9.4 19.6 6.9 6.2 0.4 9.5 9.7 0.6 8.1Automotive Axle (AUTAXL)* 245 196 Hold 370 29.8 13.0 28.0 6.7 15.4 7.2 3.5 5.4 3.3 22.6 10.2 18.4 16.6 7.1 14.0Bajaj Auto (BAAUTO) 2,021 2,450 Buy 58,490 103.8 124.2 153.1 19.5 16.3 13.2 15.8 16.0 12.0 58.2 43.5 43.0 49.7 36.7 36.3Balkrishna Ind. (BALIND) 285 244 Sell 2,754 37.6 43.0 34.9 7.4 6.4 7.9 6.6 5.7 6.1 16.2 16.0 11.7 25.5 16.2 16.0Bharat Forge (BHAFOR) 291 281 Hold 6,785 10.6 15.6 23.2 27.4 18.7 12.5 10.5 8.5 6.5 9.1 11.9 14.6 11.0 14.2 18.0Eicher Motors (EICMOT)` 4,200 5,400 Buy 11,344 148.7 227.7 305.5 28.2 18.4 13.7 19.0 9.4 6.4 19.4 23.8 26.3 19.2 23.4 24.5Escorts (ESCORT)* 115 85 Sell 1,368 14.1 15.5 17.1 6.8 6.2 5.6 3.5 3.1 2.5 9.9 11.2 10.8 9.4 9.6 9.7Exide Industries (EXIIND) 117 123 Hold 9,971 6.1 6.8 8.2 19.1 17.2 14.3 13.0 10.5 8.8 19.6 21.0 21.9 15.3 15.1 16.2Hero Mototcorp (HERHON) 2,002 2,100 Hold 39,972 106.1 111.4 144.8 18.9 18.0 13.8 11.5 12.6 11.0 42.8 45.8 53.3 42.3 38.9 42.9JK Tyre & Ind (JKIND) 127 131 Hold 519 44.9 66.2 87.2 2.8 1.9 1.5 4.5 2.9 3.0 14.5 20.3 19.3 22.4 24.3 24.5M&M (MAHMAH) 895 1,150 Buy 52,854 51.6 59.8 71.0 17.4 15.0 12.6 11.0 9.0 7.4 22.5 23.2 24.1 23.0 22.1 21.7Maruti Suzuki (MARUTI) 1,580 1,663 Hold 47,732 79.2 97.8 118.8 19.9 16.1 13.3 9.7 7.2 5.9 11.9 14.1 15.3 12.9 13.9 14.7Motherson (MOTSUM) 259 266 Hold 15,230 11.3 12.2 20.1 22.8 21.3 12.9 12.9 7.4 5.3 11.3 23.6 29.7 19.4 26.0 33.1Tata Motors (TELCO) 366 475 Buy 108,458 31.0 47.0 60.6 12.4 8.2 6.3 5.2 3.7 3.2 23.2 24.8 25.6 26.3 27.5 28.3Bosch (MICO) 8,816 9,360 Hold 27,682 319.6 350.7 437.1 27.6 25.1 20.2 17.3 15.7 12.6 15.8 15.3 16.6 16.2 15.2 16.9Source: Company, ICICIdirect.com Research SY~ September Year endThe chart compares the movement of OEM stocks in theICICIdirect.com Universe with the BSE Auto index, therebyreflecting the degree of mimicking of the indexICICIdirect.com Universe price movement vis-à-vis BSE Auto indexExhibit 11: OEM comparison with BSE AutoSince March 2012, Bajaj Auto and Maruti Suzuki haveoutperformed while Hero MotoCorp and Escorts haveunderperformed in comparison to the index by beingdivergent on the upside and downside, respectivelyBSE AutoAshok LeylandOct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13BSE Auto Bajaj MarutiTata Motors M & M EscortsHero MotoCorp Ashok Leyland Eicher MotorsSource: Company, ICICIdirect.com ResearchExhibit 12: Ancillaries comparison with BSE AutoThe chart compares the movement of auto ancillarystocks in the ICICIdirect.com universe with the BSE AutoindexBSE AutoThe volatile nature of smaller ancillary companies isreflected. These have met with numerous fluctuationswith the exception of Motherson Sumi and Amara Rajabatteries, which mimic the index greatly. Tyre companieslike JK Tyre and Apollo Tyres have performed well due tothe weakening of rubber pricesBharat ForgeOct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13BSE Auto Auto Axl Bharat Forge Balkrishna JK TyresApollo Tyres Subros Motherson Exide Inds Amara rajaSource: Company, ICICIdirect.com ResearchICICI Securities Ltd | Retail Equity Research Page 7