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ABB - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | ABB | Market Cap | 1,20,306 Cr. | Current Price | 5,670 ₹ | High / Low | 6,300 ₹ |
| Stock P/E | 68.1 | Book Value | 340 ₹ | Dividend Yield | 0.78 % | ROCE | 38.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,139 ₹ | DMA 200 | 5,404 ₹ |
| Chg in FII Hold | -0.65 % | Chg in DII Hold | 0.84 % | PAT Qtr | 409 Cr. | PAT Prev Qtr | 352 Cr. |
| RSI | 68.8 | MACD | 97.9 | Volume | 6,65,275 | Avg Vol 1Wk | 8,16,989 |
| Low price | 4,590 ₹ | High price | 6,300 ₹ | PEG Ratio | 1.08 | Debt to equity | 0.01 |
| 52w Index | 63.2 % | Qtr Profit Var | -7.17 % | EPS | 83.2 ₹ | Industry PE | 36.1 |
📊 Core Financials
- Revenue & Profitability: PAT increased from 352 Cr. to 409 Cr., showing strong growth though quarterly variance is –7.17%.
- Margins: ROE at 28.8% and ROCE at 38.6% are excellent, reflecting superior efficiency.
- Debt: Debt-to-equity ratio of 0.01 indicates virtually no leverage, a very strong balance sheet.
- Cash Flow: Strong profitability supports robust cash generation capacity.
💹 Valuation Indicators
- P/E Ratio: 68.1 vs. industry average of 36.1 — expensive but supported by strong returns.
- P/B Ratio: Current price (₹5,670) vs. book value (₹340) → ~16.7x, premium valuation.
- PEG Ratio: 1.08, suggesting valuations are aligned with growth expectations.
- Intrinsic Value: Market pricing reflects strong fundamentals but at a premium.
🏢 Business Model & Competitive Advantage
- ABB operates in electrification, automation, and robotics — sectors with long-term demand growth.
- Global brand, diversified portfolio, and technological leadership provide a durable competitive edge.
📈 Technicals & Entry Zone
- DMA 50 (₹5,139) and DMA 200 (₹5,404) show strong support levels.
- RSI at 68.8 indicates near overbought territory; MACD positive suggests bullish momentum.
- Entry Zone: Attractive on dips near ₹5,100–5,300 for long-term investors.
- Long-Term Holding: Strong fundamentals justify holding; suitable for compounding wealth in industrial growth themes.
✅ Positive
- Excellent ROCE (38.6%) and ROE (28.8%).
- Virtually debt-free (0.01 debt-to-equity).
- Strong global brand and diversified industrial presence.
⚠️ Limitation
- High valuation multiples (P/E 68.1, P/B 16.7x).
- Dividend yield of 0.78% is modest despite strong profits.
- Quarterly profit variance (–7.17%) indicates some earnings volatility.
📉 Company Negative News
- FII holdings decreased (–0.65%), showing reduced foreign investor confidence.
- Stock trading near overbought levels (RSI 68.8), risk of short-term correction.
📈 Company Positive News
- DII holdings increased (+0.84%), showing strong domestic institutional support.
- Quarterly PAT growth from 352 Cr. to 409 Cr. reflects operational strength.
🏭 Industry
- Industrial automation and electrification sectors are poised for long-term growth in India.
- Industry average P/E (36.1) is much lower, highlighting ABB’s premium positioning.