1. At a Glance
Ladies and gentlemen, please welcome to the corporate stage — the company that makes India sweat slightly less, but its investors sweat a lot more —Johnson Controls–Hitachi Air Conditioning India Ltd (JCHAC), soon to be rechristened asBosch Home Comfort India Ltd.
At ₹1,752 a share and amarket cap of ₹4,764 crore, the stock trades at a “nosebleed”P/E of 118, which means every rupee of earnings costs you ₹118 — roughly the same price as a liter of petrol in Mumbai. Thebook valuestands at ₹176, and with aP/B ratio of 9.98, the stock is priced as if it sells diamonds instead of ACs.
Despite posting₹405 crore revenuein Q2 FY26, the company reported aloss of ₹30 crore(yes, negative, again). Operating profit margins continue to play hide-and-seek — down to–9%. Yet, in a plot twist worthy of a Bollywood sequel,Bosch GmbH has acquired a 74.25% stake, launching an open offer at ₹1,762.54 per share for another 25.75%. That’s right — Hitachi has exited, and now your room cooler belongs toBosch Germany.
So, how did a Japanese brand become German property while making Indian investors question their own sanity? Let’s switch on the compressor and dive in.
2. Introduction
JCHAC is a company that has been fighting the Indian weather, competition, and its own financial thermostat for years. They make air conditioners, refrigerators, and chillers — the very things that prevent people from melting in May. But while their machines cool, their financials have often beenlukewarm.
FY25 and FY26 brought both chaos and catharsis. The Bosch deal closed on1st August 2025, officially turning the company into aBosch subsidiary. Within weeks, came thename changetoBosch Home Comfort India Ltd. For loyal shareholders, this was like watching a soap opera where the lead character changes mid-season — same face, new surname.
The company is battling giants —Blue Star,Voltas,Whirlpool,LG, andCrompton— all fighting for a piece of the 20-million-unit Indian AC market. Hitachi, despite its brand legacy, struggled with thin margins, high costs, and seasonal dependence.
Yet, beneath the surface, there’s a flicker of hope. Bosch is known for operational discipline, German efficiency, and zero tolerance for inefficiency (and jokes). Can they fix the thermostat of this profit-challenged company? Or will this become another “synergy” buzzword that gets frozen in PowerPoint hell?
3. Business Model – WTF Do They Even Do?
In simple words: JCHAC manufactures and sells cooling products, while occasionally freezing investor expectations.
Their product bouquet is impressive —room air conditioners (RACs), VRF systems, ductable units, chillers, and refrigerators. Themanufacturing facility in Kadi, Gujarat, pumps out:
- 900,000 RACs annually,
- 120,000 tons of ductable units,
- 9,000 VRFs, and
- 300 chillers.
They also dodesign and development servicesfor group companies, accounting for about 2% of revenue — basically the R&D cousin that never gets invited to parties.
Distribution network:Over 600 exclusive partners, 100 showrooms, and 10,000 sales points — ensuring even your neighborhood electronics store uncle can sell you a Hitachi AC that cools but doesn’t necessarily profit.
Revenue breakup (FY23):
- Manufactured goods: 79%
- Traded goods: 14%
- Services: 6%
- Others: 1%
Their export operations in SAARC nations (Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives) contribute a modest5%of revenues. So yes, even the Himalayas have Hitachi air conditioners trying to cool already cold mountains.
4. Financials Overview
| Metric | Latest Qtr (Sep FY26) | YoY Qtr (Sep FY25) | Prev Qtr (Jun FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹405 Cr | ₹396 Cr | ₹853 Cr | 2.3% | -52.5% |
| EBITDA | -₹36 Cr | -₹27 Cr | ₹36 Cr | -33% | -200% |
| PAT | -₹30 Cr | -₹30 Cr | ₹15 Cr | Flat | -300% |
| EPS (₹) | -14.70 | -11.05 | 5.61 | — | — |
Note: EPS is quarterly as per screener data.
When your operating margin swings from +4% to –9% in a single quarter, even your balance sheet needs a fan. Q2 was seasonally weak, yes, but the losses were still chillier than expected.
JCHAC’s P/E of 118makes no sense with recurring losses — “P/E not meaningful” should be printed on the stock certificate.
5. Valuation Discussion – Fair Value Range
Let’s dissect this frozen dinosaur.
Method 1: P/E basedIndustry P/E (median) ≈ 52.2Company EPS (TTM) = ₹10.3→ Fair Value Range (based on peers) = ₹537 – ₹742
Method 2: EV/EBITDA basedEV = ₹4,925 CrEBITDA (TTM) = ₹127 Cr (approx)→ EV/EBITDA ≈ 38.8 (vs industry ~18x)If normalized at 18x → FV ≈ ₹2,286 Cr EV → Equity value ≈ ₹1,940 Cr →₹712/share
Method 3: DCF (Educational)Assume 6% growth, WACC 10%, terminal growth 3%, current FCF ~₹70 Cr.DCF FV ≈ ₹700–₹850 per share
Hence,Fair Value Range = ₹700 – ₹850/share
Disclaimer: This range is purely for educational purposes and not investment advice.
6. What’s Cooking – News, Triggers, Drama
The corporate soap opera of 2025 could easily be titled“Cooling Hearts & Heated Takeovers”.
July 2024:Johnson Controls sells its global HVAC business to Bosch for $6.7 billion.
August 2025:Bosch completes the India acquisition, renaming JCHAC toBosch Home Comfort India Ltd.
November 2025:Bosch launches anopen offerat ₹1,762.54 per share to acquire an additional 25.75% (7,000,355 shares), totaling ₹1,233 crore.
October 2025:Shareholders approve the new name through postal ballot.
And let’s not forget thelitigation subplot— a disclosure in May 2024 mentioned a pending legal issue involving ₹13.18 crore.
With Bosch now at the helm, the company
