Bosch shares jumped nearly 4 per cent as UBS has upgraded the stock to “buy”’.
The stock gained as much as 3.64 per cent.
UBS has upgraded the rating to “buy’’ from “sell’’, and has cut the price target to Rs 20,000 from Rs 22,500.
The brokerage has cited over 40 per cent correction in stock price last year as a reason for upgrade.
It says the Indian government’s move to significantly accelerate emission reduction rules bodes well for the company.
UBS expects exhaust gas treatment solutions to emerge as a new revenue stream for Bosch.
It adds that the current premium valuations for the stock are sustainable.