Objective: ₹ 6,700
CMP: ₹ 5,377
ABB India, in its annual report, highlighted its focus on high growth segments and deeper penetration in level 2 cities, together with the development of new products.
Duration of the year, the company continued to benefit from the demand for premium products and greater penetration in cities of level 2 and level 3. ABB continues to see a strong potential in segments such as chemical products, pharmaceutical products, automotive, energy distribution, water, water, electronics and data centers, all of which are expected to be attracting investments, while considering. It remains focused on new investment areas, such as green hydrogen, battery storage and data centers.
The company has increased its income at an annual compound rate of 20 percent in the last five years and has doubled the profits in the last four years. The order on CY24 was lower than our expectations and we can see a short -term impact on the general order due to a slowdown in the Capex activity. However, with the continuous approach of the company in high growth segments, we hope that tickets and execution will increase after a few quarters.
The action has been corrected in recent adjustments takes into account this weakness and is currently quoted at 48.2x/43.4x p/e in the estimates of CY26/27. We reiterate the purchase with a TP or ₹ 6,700.
Posted on April 16, 2025