2QCY2011 Result Update | Auto Ancillary

August 5, 2011

Bosch
Performance Highlights
Y/E Dec. (` cr) Net sales EBITDA EBITDA margin (%) Reported PAT
Source: Company, Angel Research

ACCUMULATE
CMP Target Price
2QCY10 1,700 319 18.8 210 % chg (yoy) 21.1 18.5 (40)bp 32.9 Angel est. 1,950 363 18.6 249 diff. (%) 5.6 4.4 (21)bp 12.0

`6,945 `7,304
12 Months

2QCY11 2,059 379 18.4 279

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Auto Ancillary 21,891 0.3 7,480/5,671 2,517 10 17,306 5,211 BOSH.BO BOS@IN

Bosch reported better-than-expected performance during 2QCY2012 on account of sustained momentum in the diesel cars, light commercial vehicle (LCV) and tractor segments. Good demand for starter and generator products and exports also boosted the companys performance. We revise our revenue and earnings estimates to account for better-than-expected 2QCY2011 performance and recommend Accumulate on the stock. Strong operating performance during 2QCY2011: Bosch reported strong 21.1% yoy (down 1.3% qoq) growth in its top line to `2,059cr, driven by a 22.1% yoy (down 1.4% qoq) increase in the auto segments revenue and 29.7% yoy (down 10.1% qoq) jump in the non-auto segments revenue. During the quarter, the diesel systems segment grew by ~23% yoy and the automotive aftermarket segment reported a ~15% yoy increase in sales. EBITDA margin posted a marginal 40bp yoy (50bp qoq) decline on account of input cost pressures. Noticeably, a sharp 311bp yoy decline in other expenses helped Bosch to maintain its margin. Led by strong top-line performance and a substantial jump in interest and other income, net profit posted better-than-expected 32.9% yoy (1.6% qoq) growth to `279cr. Outlook and valuation: We expect Bosch to register a ~17% CAGR in its net sales over CY201012E, leading to a ~16% CAGR in earnings. As a result, we estimate Bosch to post EPS of `327.2 and `365.2 for CY2011E and CY2012E, respectively. At `6,945, the stock is trading at 21.2x CY2011E and 19x CY2012E earnings, respectively. We recommend Accumulate on the stock with a target price of `7,304, valuing it at 20x CY2012E earnings.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 71.2 15.6 5.7 7.5

Abs. (%) Sensex Bosch

3m (5.0) 6.3

1yr (4.8) 16.7

3yr 15.7 81.4

Key financials
Y/E Dec. (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

CY2009 4,822 4.8 540 (2.4) 16.5 171.8 40.4 6.4 15.9 15.7 3.9 30.6

CY2010 6,682 38.6 858 59.1 18.2 273.4 25.4 5.3 20.9 26.2 2.7 18.2

CY2011E 7,937 18.8 1,027 19.7 18.3 327.2 21.2 4.2 20.0 25.9 2.2 12.6

CY2012E 9,124 15.0 1,147 11.6 17.9 365.2 19.0 3.5 18.6 23.7 1.9 10.8

Yaresh Kothari
022-3935 7800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

Bosch | 2QCY2011 Result Update

Exhibit 1: Quarterly performance

Y/E Dec. (` cr) Net sales (incl. otr. op. inc.) Consumption of RM (% of sales) Staff costs (% of sales) Purchase of traded goods (% of sales) Other expenses (% of Sales) Total expenditure Operating profit OPM (%) Interest Depreciation Other income PBT (% of sales) Provision for taxation (% of PBT) Reported PAT PATM (%) Equity capital (cr) EPS (`)
Source: Company, Angel Research

2QCY11 2QCY10 % chg 1HCY11 1HCY10 % chg 2,059 564 27.4 236 11.4 582 28.3 299 14.5 1,681 379 18.4 (45) 50 28 401 19.5 122 30.5 279 13.5 31.4 88.8 1,700 396 23.3 199 11.7 489 28.8 296 17.4 1,381 319 18.8 (24) 48 16 312 18.3 102 32.7 210 12.3 31.4 66.8 32.9 32.9 20.2 84.9 3.4 70.8 28.8 21.7 18.5 1.0 19.0 18.1 21.1 42.3 4,145 1,310 31.6 451 10.9 1,011 24.4 600 14.5 3,372 773 18.6 (91) 97 39 805 19.4 252 31.3 553 13.3 31.4 176.2 3,296 915 27.8 418 12.7 816 24.8 523 15.9 2,672 624 18.9 (49) 105 36 603 18.3 191 31.7 412 12.5 31.4 131.3 34.2 34.2 31.9 85.5 (7.5) 9.9 33.4 26.2 23.8 14.8 23.9 8.1 25.8 43.1

Exhibit 2: Segmental performance

Y/E Dec. (` cr) Revenue Automotive Others Total Less: Inter-segment revenue Revenue EBIT Automotive Others Total Add: Net interest income Less: Unallocable exp. EBIT EBIT margin (%) Automotive Others Overall
Source: Company, Angel Research

2QCY11 2QCY10 1,834 204 2,037 13 2,024 335 21 355 45 (1) 401 18.3 10.2 17.4 1,502 157 1,659 3 1,656 285 9 294 24 312 19.0 5.6 17.7

% chg 1HCY11 1HCY10 22.1 29.7 22.8 22.2 17.3 136.3 20.8 84.9 28.8 3,694 431 4,124 18 4,107 684 42 726 91 11 805 18.5 9.7 17.6 2,911 332 3,244 7 3,237 534 32 566 49 11 603 18.3 9.7 17.4

% chg 26.9 29.6 27.1 26.9 28.2 30.0 28.3 85.6 (0.3) 33.5

7 (118.0)

August 5, 2011

Bosch | 2QCY2011 Result Update

Strong top-line performance; beats estimates: Bosch reported strong 21.1% yoy (down 1.3% qoq) growth in its top line to `2,059cr, ahead of our expectation of `1,950cr. Top-line growth was led by strong 22.1% yoy (down 1.4% qoq) growth in the auto segment to `1,834cr. Non-auto business also recorded strong growth of 29.7% yoy (down 10.1% qoq) to `204cr. The diesel systems and automotive aftermarket segment posted strong growth of ~23% and ~15% yoy, respectively. The starters and generator segment registered growth of ~44% yoy during 2QCY2011. Exports growth also remained robust, registering an increase of ~26% yoy, primarily due to higher exports to European markets.

Exhibit 3: Net sales up 21.1% yoy

(` cr) 2,500 2,000 1,500 1,000 500 0 1.0 2.2 39.0 36.3 31.9 29.5 30.7 21.1 Net sales 58.6 Net sales growth (RHS) (%) 70 60 50 40 30 20 10 0 (10)

Exhibit 4: Segment-wise revenue trend

(` cr) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Automotive Revenue 1,502 Others Revenue 1,860 1,551 1,614 1,834

1,410 1,096 1,177 1,195

127

118

132

175

157

160

164

227

204

2QCY09

3QCY09

4QCY09

1QCY10

2QCY10

3QCY10

4QCY10

1QCY11

2QCY09

3QCY09

4QCY09

1QCY10

2QCY10

3QCY10

4QCY10

1QCY11

2QCY11

Source: Company, Angel Research

Source: Company, Angel Research

EBITDA margin at 18.4%: For 2QCY2011, Bosch reported a marginal 40bp yoy (down 50bp qoq) contraction in EBITDA margin to 18.4% due to increases in commodity costs, especially steel, aluminium and copper. The companys raw-material cost increased by 316bp yoy resulting in a raw-material cost/net sales ratio at 56.6% vs. 53.5% in 2QCY2011. However, a 311bp and 41bp yoy decrease in other expenditure and employee cost arrested further margin contraction. Thus, operating profit grew by 18.5% yoy (down 3.9% qoq) to `379cr.

Exhibit 5: EBITDA margin at 18.4%

(%) 60 50 40 30 20 10 0 17.6 19.7 17.2 19.1 18.8 19.8 16.4 18.9 18.4 54.1 51.0 53.5 53.5 53.4 53.7 56.7 56.6 EBITDA margins Raw material cost/sales

Exhibit 6: Net profit up 32.9% yoy

(` cr) 300 250 200 150 100 50 0 Net profit 15.1 15.0 12.7 10.9 Net profit margin (RHS) 13.8 13.2 (%) 18 16 14 13.5 12 10 8 6 4 2 0

12.3

49.1

11.2

2QCY09

3QCY09

4QCY09

1QCY10

2QCY10

3QCY10

4QCY10

1QCY11

2QCY09

3QCY09

4QCY09

1QCY10

2QCY10

3QCY10

4QCY10

1QCY11

Source: Company, Angel Research

2QCY11

Source: Company, Angel Research

August 5, 2011

2QCY11

2QCY11

Bosch | 2QCY2011 Result Update

Net profit growth boosted by higher other income: Net profit grew strongly by 32.9% yoy (1.6% qoq) to `279cr, aided by strong operating performance. Further, a sharp increase in other income and interest income on account of sale of marketable securities and higher treasury yields, respectively, benefitted the companys net profit performance. Tax rate during the quarter was slightly lower than expected, as sale of securities was exempted from tax.

Conference call Key highlights

According to management, the automotive industry has witnessed a marginal slowdown largely due to sluggish growth in the passenger car and medium and heavy commercial vehicle segments. Top-line performance during 2QCY2011 was led by ~23% growth in the diesel systems segment, ~15% growth in the automotive aftermarket segment, ~26% growth in the exports segment and a ~44% increase in the starters and generators segment. Capacity utilisation in the diesel systems business is currently at ~85%. Boschs market share in the diesel systems segment currently stands at 6570%. Management expects raw-material prices to remain at current levels and expects the raw-material to sales ratio to remain at 5456%. Management expects to incur capital expenditure of `600cr in CY2011. Depreciation expense is expected to increase significantly, as majority of the capital expenditure will be incurred in 2HCY2011. Contribution of diesel passenger vehicles to Boschs sales stands at 2025%.

August 5, 2011

Bosch | 2QCY2011 Result Update

Investment arguments
Technology-intensive industry supplemented by high bargaining power: We estimate Bosch to post a ~17% CAGR in its top line and a ~16% CAGR in its net profit over CY201012E. Further, the company enjoys high margins in the auto component segment due to high entry barriers and its dominant position in the market. Moreover, better utilisation of new capacities and gradual localisation of component supplies would help the company to sustain its margin at 18% going ahead. Dependent on favourable CV cycle for growth: Bosch's prospects are largely derived from demand arising in the CV and tractor segments, which are estimated to post CAGRs of 1012% each over the next couple of years. Further, greater visibility on newer growth opportunities is emerging for the company, following its investments in new and innovative technologies such as CRS and gasoline systems. We believe the company will continue to enjoy premium valuations, owing to strong parental focus and increasing long-term growth opportunities in the Indian market, facilitated by changes in emission norms. Moreover, Bosch has been a consistent performer with strong cash flows in the Indian auto component industry.

Outlook and valuation

We revise our revenue and earnings estimates upwards to account for better-thanexpected 2QCY2011 performance. We expect Bosch to register a ~17% CAGR in its net sales over CY201012E, leading to a ~16% CAGR in earnings. As a result, we estimate Bosch to post EPS of `327.2 and `365.2 for CY2011E and CY2012E, respectively. At `6,945, the stock is trading at 21.2x CY2011E and 19x CY2012E earnings, respectively. We recommend Accumulate on the stock with a target price of `7,304, valuing it at 20x CY2012E earnings, in-line with its historical multiple.

Exhibit 7: Key assumptions

Auto segment Y/E Dec. (` cr) CY2009 CY2010 CY2011E CY2012E CAGR (%) Growth yoy (%) CY2009 CY2010 CY2011E CY2012E (26.1) 44.5 22.4 17.1 17.3 22.0 16.0 14.0 (10.9) 16.0 12.0 12.0 101.5 105.0 41.6 25.0 49.0 15.0 15.0 15.0 19.3 26.0 20.0 20.0 (17.4) 20.0 20.0 18.0 15.9 24.0 20.0 18.0 (18.8) 30.0 25.0 22.0 Diesel systems 1,996 2,884 3,530 4,135 27.5 Automotive aftermarket 1,197 1,460 1,693 1,930 17.3 Starters and generators 236.8 274.6 307.6 344.5 13.3 Gasoline systems 187.8 384.9 545.1 681.3 53.7 Car multimedia 48.7 56.1 64.5 74.1 15.0 Power tools 370.8 467.2 560.6 672.8 22.0 Non-auto segment Security technology 80.2 96.3 115.5 136.3 19.3 Packaging technology 45.2 56.0 67.3 79.4 20.6 Special purpose machines 28.1 36.5 45.6 55.7 25.6

Source: Company, Angel Research

August 5, 2011

Bosch | 2QCY2011 Result Update

Exhibit 8: Angel v/s consensus forecast

Angel estimates CY11E Net sales (` cr) EPS (`) 7,937 327.2 CY12E 9,124 365.2 Consensus CY11E 7,869 321.7 CY12E 9,073 374.7 Variation (%) CY11E 0.9 1.7 CY12E 0.6 (2.5)

Source: Bloomberg, Angel Research

Exhibit 9: One-year forward P/E band

(`) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Share price (`) 12x 16x 20x 24x

Exhibit 10: One-year forward P/E chart

(x) 35 30 25 20 15 10 5 0 One-yr forward P/E Five-yr average P/E

Feb-08

Feb-11 Dec-10 Apr-11

Sep-07

Sep-10

Jun-06

Jan-06

Aug-05

Aug-08

Apr-07

Jan-09

Jun-09

Nov-06

Dec-06

Nov-05

Mar-09

Dec-10

Feb-04

Sep-04

Feb-08

Sep-08

Source: Company, Bloomberg, Angel Research

May-06

May-10

Source: Company, Bloomberg, Angel Research

Exhibit 11: Premium/Discount to Sensex

(%) 100 80 60 40 20 0 (20) (40) (60) (80) Absolute premium Five-yr average premium

Exhibit 12: Bosch v/s Sensex

400 350 300 250 200 150 100 50 0 Bosch India Sensex

Dec-03

Dec-10

Nov-09

Jan-03

Apr-05

Oct-09

Apr-10

Jul-03

Jul-07

Jul-11

Jun-07

May-05

Jan-08

Aug-08

Mar-09

Apr-02

Apr-06

Dec-05

Dec-06

Dec-07

Dec-08

Nov-06

Aug-05

Aug-06

Aug-07

Aug-08

Aug-09

Dec-09

Oct-02

Feb-05

Oct-09

Jul-11

Sep-05

Jan-05

Jul-04

May-03

May-10

Source: Company, Bloomberg, Angel Research

Source: Company, Bloomberg, Angel Research

Exhibit 13: Auto Ancillary - Recommendation summary

Company Amara Raja Automotive Axle Bharat Forge* Bosch India
# ^

Reco. Accumulate Neutral Buy Accumulate Accumulate Accumulate Accumulate Accumulate

CMP (`) 240 441 279 6,945 153 1,214 221 34

Tgt. price (`) 257 351 7,304 161 1,285 250 36

#

Upside (%) 7.3 26.0 5.2 5.5 5.8 13.2 5.9

P/E (x) FY12E 11.6 11.6 14.9 21.2 18.8 12.4 21.3 6.8
^

EV/EBITDA (x) FY12E 6.6 6.5 7.9 12.6 11.5 6.9 9.3 4.2 FY13E 5.6 5.4 6.3 10.8 9.6 6.1 7.4 3.8 10.2 9.8 11.9 19.0 16.4 11.3 15.9 6.4

RoE (%) FY12E 23.3 26.2 20.4 20.0 23.0 25.0 27.3 12.2 FY13E 21.5 25.0 21.3 18.6 22.4 22.1 30.9 11.8

FY11-13E EPS CAGR (%) 17.3 24.1 35.3 15.6 12.0 21.0 17.3 5.1

FY13E

Exide Industries FAG Bearings# Motherson Sumi* Subros

Source: Company, Angel Research; Note: * Consolidated results;

December year end;

September year end

August 5, 2011

Aug-10

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Jul-11

Jul-11

Bosch | 2QCY2011 Result Update

Profit & Loss Statement

Y/E Dec. (` cr) Gross sales Less: Excise duty Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of / Total Op. Inc.) Depreciation & Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg CY07 4,804 478 4,325 147 4,472 14.2 3,550 2,202 351 471 527 922 13.5 20.6 254 668 18.1 15.4 4 192 23.6 856 7.2 46 810 247 30.5 609 564 26.8 13.0 190.1 175.8 26.8 CY08 5,093 491 4,602 143 4,745 6.1 3,888 2,416 377 530 566 857 (7.1) 18.1 302 554 (17.0) 12.0 9 311 40.1 857 0.1 81 776 223 28.7 634 553 (1.9) 12.0 198.0 172.7 (1.8) CY09 5,085 276 4,822 186 5,009 5.6 4,183 2,551 360 609 663 826 (3.6) 16.5 304 523 (5.7) 10.8 1 285 38.4 806 (5.9) 64 742 203 27.3 604 540 (2.4) 11.2 192.2 171.8 (0.5) CY10 7,123 442 6,682 200 6,882 37.4 5,629 3,598 432 796 803 1,253 51.7 18.2 254 999 91.2 15.0 4 207 17.2 1,203 49.2 0 1,202 344 28.6 859 858 59.1 12.8 273.5 273.4 59.1 CY11E 8,462 525 7,937 220 8,157 18.5 6,665 4,286 521 921 937 1,493 19.1 18.3 280 1,212 21.3 15.3 2 236 16.3 1,447 20.3 0 1,447 420 29.0 1,027 1,027 19.7 12.9 327.2 327.2 19.7 CY12E 9,727 603 9,124 242 9,366 14.8 7,687 4,941 593 1,072 1,081 1,679 12.5 17.9 322 1,357 12.0 14.9 2 260 16.1 1,615 11.6 0 1,615 468 29.0 1,147 1,147 11.6 12.6 365.2 365.2 11.6

August 5, 2011

Bosch | 2QCY2011 Result Update

Balance Sheet
Y/E Dec. (` cr) SOURCES OF FUNDS
Equity Share Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets

CY07 32 2,531 2,563 252 (141) 2,674 2,339 1,859 481 158 6 1,064 2,063 686 306 1,071 1,098 965 2,674

CY08 32 3,063 3,095 264 (170) 3,190 2,722 2,120 602 167 6 867 2,741 1,071 422 1,248 1,193 1,548 3,190

CY09 31 3,354 3,385 284 (201) 3,468 2,865 2,358 507 100 6 1,418 2,758 1,068 556 1,135 1,320 1,438 3,468

CY10 31 4,067 4,098 276 (218) 4,156 3,017 2,588 430 224 6 1,607 3,752 1,326 896 1,530 1,863 1,889 4,156

CY11E 31 5,118 5,149 287 (218) 5,218 3,732 2,868 864 112 6 1,826 4,145 1,460 1,071 1,614 1,736 2,409 5,218

CY12E 31 6,126 6,157 287 (218) 6,226 4,179 3,190 988 84 6 2,179 4,932 1,842 1,232 1,858 1,963 2,969 6,226

Cash Flow Statements

Y/E Dec. (` cr) Profit before tax Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in Fixed Assets (Inc.)/Dec. in Investments (Inc.)/Dec. in loans and advances Others Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances CY07 810 254 52 194 247 675 (309) (337) 9 192 (445) 21 36 (226) (168) 61 625 686 CY08 776 302 120 486 223 490 (391) 197 (127) 311 (10) 50 24 (168) (94) 385 686 1,071 CY09 742 304 (264) (318) 203 897 (75) (551) (133) 285 (475) (1) 20 94 (366) (253) 170 1,071 1,068 CY10 1,202 254 (162) 65 344 886 (277) (190) (313) 207 (572) (8) 110 (158) (56) 258 1,068 1,326 CY11E 1,447 280 232 823 420 717 (603) (219) (182) 236 (768) 11 146 27 184 134 1,326 1,460 CY12E 1,615 322 19 347 468 1,141 (418) (353) (402) 260 (913) 147 8 154 382 1,460 1,842

August 5, 2011

Bosch | 2QCY2011 Result Update

Key Ratios
Y/E Dec. Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) Working capital cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Interest) (0.6) (1.6) 178.2 (0.5) (2.0) (0.7) (2.7) (0.6) (2.1) 254.3 (0.6) (2.0) 763.7 (0.6) (2.2) 743.7 2.0 42 47 64 19 1.9 41 51 59 29 1.8 42 49 61 31 2.3 37 36 60 25 2.4 38 35 63 34 2.4 39 35 65 40 28.0 26.2 22.0 18.9 19.4 17.9 15.7 14.0 15.9 26.2 28.2 20.9 25.9 26.4 20.0 23.7 25.4 18.6 15.4 0.7 2.6 27.8 1.1 27.8 12.0 0.7 2.3 19.8 2.4 19.8 10.8 0.7 2.2 17.5 0.3 17.5 15.0 0.7 2.6 28.1 1.0 28.1 15.3 0.7 2.5 26.9 0.4 26.9 14.9 0.7 2.3 24.3 0.5 24.3 175.8 172.7 171.8 175.8 172.7 171.8 255.0 267.1 268.5 25.0 800 25.0 30.0 967 1,078 273.4 273.4 354.3 40.0 1,305 327.2 327.2 416.4 40.0 1,640 365.2 365.2 467.8 40.0 1,961 39.5 27.2 8.7 0.4 4.2 26.2 7.6 40.2 26.0 7.2 0.4 4.0 28.2 6.3 40.4 25.9 6.4 0.4 3.9 30.6 5.7 25.4 19.6 5.3 0.6 2.7 18.2 4.6 21.2 16.7 4.2 0.6 2.2 12.6 3.6 19.0 14.8 3.5 0.6 1.9 10.8 2.9 CY07 CY08 CY09 CY10 CY11E CY12E

63.5 439.2

August 5, 2011

Bosch | 2QCY2011 Result Update

Research Team Tel: 022 - 3935 7800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Bosch No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) :

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

August 5, 2011

10