Bosch Limited announces stock split and bonus issue, increasing share count by 20 times

Starlite shares have shown significant growth over the past ten months, increasing by approximately eightfold. Analysts believe that due to the rising demand for data processing centers, increased capacity, strong financial performance, and a large order book, the stock price could more than double its current level.

On Thursday, Starlite Technologies shares crossed the lower bound of the 5 percent price corridor, reaching 757 rupees, which lowered the company's market capitalization below 39,000 crore rupees. However, this asset fell by more than 28 percent from its 52-week high of 1,054.45 rupees, recorded on October 7, 2026. Despite this correction, the shares have grown by almost 795 percent from the 52-week low of 84.65 rupees, recorded on January 27, 2026.

Starlite Technologies reported a year-over-year (YoY) increase in net profit of approximately 128 times, reaching 517 crore rupees compared to 4 crore rupees in the same period last year. Operating income grew by 145 percent year-over-year to 2,529 crore rupees, and EBITDA increased fivefold to 846 crore rupees, with a margin of 27.1 percent. The company's order book reached an all-time high of 35,274 crore rupees.

In the second quarter of fiscal year 27 (Q2FY27), Starlite Technologies showed impressive results: revenue, adjusted EBITDA, and net profit (PAT) grew quarter-over-quarter (QoQ) by 32, 69, and 100 percent, respectively. JM Financial noted a very high long-term growth outlook supported by the record order portfolio worth 35,274 crore rupees. This portfolio includes a large hyperscaler order worth $1.2 billion, a landmark AI data center contract worth $1.11 billion, as well as major domestic telecommunication orders.

The company's management maintains a revenue target of 20,000 crore rupees for fiscal year 29 (FY29) but has raised the EBITDA margin target for FY29 to 30 percent. It is expected that this increased target will result in a higher margin in the remainder of Q2FY27 than what was recorded in Q2FY27. JM Financial forecasts that the company will achieve cumulative growth rates of 51.91 percent for revenue, 302 percent for EBITDA, and 302 percent for PAT between FY26 and FY29E, and reaffirmed its 'Buy' recommendation with a target price of 1,020 rupees.

Nevertheless, analysts highlighted several significant risks, including difficulties in sourcing necessary raw materials, sharp declines in capital expenditures by hyperscalers and data centers, trade barriers such as anti-dumping duties and ongoing trade wars, low capital expenditure intensity in the telecommunications sector, and legal and regulatory risks.

Starlite Technologies is well-positioned to leverage strong global demand for data center and hyperscaler infrastructure due to its robust order book, technological capabilities, and expanding capacity. Nirmal Bang Institutional Equities believes that good profit growth is expected due to a strong execution outlook, the growing contribution of the data center and cloud services business, and continuous margin expansion. The firm forecasts that normalized EBITDA margins will be 26.3 percent in FY27E and 30.9 percent in FY29E, corresponding to an EBITDA CAGR of 42 percent and a PAT CAGR of 53 percent during FY27E–FY29E. They maintain their EV/EBITDA valuation multiple at 20 for FY28E/FY29E and reaffirm their 'Buy' recommendation with a revised target price of 1,544 rupees.

Other brokerage firms have set the following targets: Arihant Capital Markets — 1,229 rupees; Nomura — 1,350 rupees; NuVama Institutional Equities — 1,460 rupees; and CLSA set the highest target at 1,644 rupees, suggesting a potential growth of 117 percent.

Reha Junjhunwala's investments in stocks fell by 50% on Wednesday. Some trading applications showed a drop of up to 50%, but this decline was not due to a reduction in invested funds, but rather to corporate changes.

The reason for such a sharp drop was the distribution of an exclusive stock bonus (ex-bonus) across all Concord Biotech shares on Wednesday, according to previously announced corporate actions. This decision was linked to the announcement of a bonus issuance for relevant shareholders, which reflected in the sharp decrease in share price.

Concord informed the stock exchange documentation that the company's board of directors, at a meeting held on October 27, 2026, set November 4 as the record date. The purpose of this date is to determine shareholders' right to receive bonus shares at a ratio of 1:1, meaning one bonus share for every fully paid existing share. This condition is subject to regulatory approval.

This means that all relevant Concord Biotech shareholders will receive an additional share for each share they hold on the record date. The total number of shares held by all relevant shareholders will double, but the share price will be adjusted accordingly, which will not change the total invested value.

Concord Biotech shares closed on Tuesday at a price of 1229.90 rupees, and after the bonus share issuance adjustment, they opened on Wednesday at a price of 610 rupees. It is possible that some trading applications displayed the unadjusted price from the previous day, which created the impression of a 50-52% drop on the exchange.

After the split adjustment, Concord Biotech shares initially fell to 595 rupees at the beginning of the session, but on Wednesday, they recovered, rising by 4.8% to 623.65 rupees. Meanwhile, the company's total market capitalization approached 13,000 crore rupees. The shares decreased by 24% compared to the 52-week high reached in August 2026 at 807.03 rupees. Nevertheless, the current price is 26% higher compared to the 52-week low recorded in April 2026 at 493.53 rupees.

Concord Biotech Limited, founded in 1984, is a biopharmaceutical company engaged in research and development in India and is among the country's leading API companies. Concord Biotech shares were first listed in August 2023 when the company raised 1,550.52 crore rupees at a price of 741 rupees per share. Currently, the shares are trading 70% above their adjusted IPO price.

Three discretionary trusts established in honor of the children of the late prominent investor Rakesh Junjhunwala own approximately 2.52 crore shares of the company (or 5.04 crore shares based on post-adjustment), representing a 24.10% stake. The value of this stake is currently estimated at 3,143.10 crore rupees.

European provider of heating and cooling solutions, Bosch Home Comfort Group, plans to capture a significant share of the Indian air conditioner market, aiming for a double-digit figure within the next two years. The company intends to launch air conditioners under the Bosch brand next year.

According to Managing Director Sanjay Sudhakaran, the company also aims to enter the top five leading brands in the medium term. Bosch Home Comfort Group, part of the German industrial giant Bosch GmbH, is accelerating its expansion in India using a dual branding strategy.

In August 2025, the company acquired the global business for residential and small commercial air conditioners from Johnson Controls and Hitachi. According to the developed strategy, Hitachi will be positioned in mass demand and premium segments, while Bosch will occupy the performance-premium and super-premium niches to cover various consumer groups.

Furthermore, Bosch Home Comfort is strengthening its long-term commitment to India by planning to invest 80 million euros (equivalent to approximately 900 crore rupees) in the coming years. These funds will be directed towards expanding production capacity, increasing localization levels, and strengthening the company's engineering and testing capabilities.

Strategy after acquisition

Following the takeover, Bosch Home Comfort Group took over Hitachi's air conditioning business in India. Here, the company plans to reform its product range to strengthen its presence in the fast-growing mass demand and mass premium segments. Air conditioners under the Bosch brand will target the niche performance-premium segment, competing with brands such as O General and Mitsubishi Electric, with a price range of 45,000 to 50,000 rupees and above.

Sudhakaran emphasized that 'we are positioning Bosch as a super-premium category, and Hitachi as a mass category,' adding that both brands will have differentiated product lines, features, and value propositions. Bosch will rely on its heritage of German engineering and premium positioning, while Hitachi will continue to leverage its expertise in air conditioning and Japanese engineering excellence.

The company aims for 'a strong double-digit market share in India within the next two years' and hopes to become 'one of the top five brands in the country's cooling and comfort sector in the medium term.' He noted that India offers 'huge growth potential' due to low penetration of residential air conditioners (RACs), rising disposable incomes, and the development of the country's economy.

Investment of 80 million euros

These investments will support the company's expansion in small commercial air conditioning, including Variable Refrigerant Flow (VRF) systems under the Hitachi brand, alongside the residential air conditioning business. Currently, the company manufactures the latest line of Hitachi VRF products at its facility in Kadi, Gujarat. Additionally, the global R&D division in Ahmedabad has been expanded to focus on small commercial air conditioning technologies.

The Kadi plant produces over 10 lakh units of air conditioners annually. Sudhakaran stated that they will use capital expenditures in the most sensible way, following the philosophy of 'growing with the market.' The company may also explore establishing a new manufacturing facility in South India, although Sudhakaran neither confirmed nor denied this idea.

Localization and integrated manufacturing

Local manufacturing and backward integration remain central elements of the company's strategy as it seeks to enhance price competitiveness and expand its product range. Sudhakaran reported that about 75 percent of the company's procurement is sourced locally, with imports accounting for approximately 25 percent. He noted that the company is among the highly localized manufacturers in the air conditioning industry, possessing an integrated production complex that manufactures several components in-house.

The Kadi factory manufactures heat exchangers, inner unit molds, condenser units, sheet metal components, tubes, and coils, and also conducts painting operations. He added that only what is unavailable domestically is imported, and the company has always prioritized local production over relying on imports when exchange rates or other macroeconomic conditions made imports more attractive. The company also has access to compressor supplies through a joint venture with a major global compressor manufacturer that has a plant in Ahmedabad.

Distribution synergy

Bosch Home Comfort India will utilize Hitachi's existing distribution and retail network to support the expansion of both brands, while also exploring opportunities through Bosch's home appliance retail network. The company plans to collaborate with the Bosch home appliance sales business to make Bosch-branded air conditioners available in Bosch and BSH stores. Major retail chains, regional dealers, and online platforms will remain important sales channels, with a significant overlap in customers served by both brands.

Sudhakaran stated that the company expects to achieve synergistic effects in sales and service networks, production operations, research and development, new product development, supply chain, and human resource management. He concluded: 'We can synergize all back-end processes. On the front end, we will develop differentiated positioning based on product, features, and channel.'