ABB - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.9

Here’s a deep dive into ABB India’s financial snapshot and long-term investment outlook

📊 Core Financials Assessment

Profitability & Returns

ROE: 5.45% and ROCE: 9.77% — relatively low, signaling modest efficiency in generating returns.

EPS is just ₹6.65 despite the stock's premium pricing — not aligned with valuation.

PAT increased from ₹79.7 Cr to ₹146 Cr — strong growth, but no clear % variation given.

Balance Sheet Strength

Debt-to-equity: 0.01 — virtually debt-free, a big plus in volatile markets.

Dividend Yield: 0.79% — small but consistent; not a key attraction for income seekers.

💸 Valuation Metrics

Metric Value Commentary

P/E Ratio 844 Extremely overpriced vs. Industry PE of 57.2

P/B Ratio ~28.3 Premium beyond fundamentals

PEG Ratio N/A Makes valuation harder to justify

Intrinsic Value ❌ Very likely below CMP Based on weak ROE and high valuation

🧠 Business Model & Competitive Edge

ABB operates in power and automation tech — segments that benefit from infrastructure growth and electrification trends.

While brand strength is solid globally, Indian performance seems stretched in valuation.

FII Holding -1.02% — suggests foreign investors are booking profits.

DII Holding +0.65% — domestic institutions see some value or stability.

📉 Technical Indicators & Sentiment

RSI: 38.4 — nearing oversold zone; possible short-term reversal.

MACD: -77.8 — bearish momentum persists.

Currently trading below DMA 50 (₹5,787) and DMA 200 (₹6,073) — technical weakness visible.

Stock has corrected heavily from 52W high of ₹8,941 to ₹5,579 — ~38% drop.

📍 Entry Zone & Holding Strategy

Entry Zone: ₹5,200–₹5,500 — close to support and RSI comfort zone.

Avoid chasing at highs until fundamentals improve or PEG becomes favorable.

Long-Term View: Only suitable if you're betting on infra-sector tailwinds and future earnings catch-up. Otherwise, current valuations suggest caution.

Would you like me to simulate potential future valuation scenarios or compare ABB with peers like Siemens or CG Power? That could offer perspective on relative strength or weakness. 🔍📈

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