ABB - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

Here’s a detailed analysis of ABB India Ltd (ABB)

🧾 Core Financials

Revenue & Profit Trends

Quarterly PAT declined from ₹474 Cr to ₹352 Cr, a 20.5% drop, indicating short-term pressure

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Despite this, ABB has delivered 556% returns over 5 years, with consistent revenue growth of ~5.2% quarterly

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Profitability Ratios

ROCE: 38.6% and ROE: 28.8% — outstanding capital efficiency.

EPS: ₹84.7 — strong earnings per share.

Debt & Liquidity

Debt-to-equity: 0.01 — virtually debt-free.

Dividend yield of 0.81% adds modest income.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 64.0 49.5 Premium valuation

P/B Ratio ~16.0 ~5.2 High book premium

PEG Ratio 1.01 ~1 Fairly valued on growth basis

Intrinsic Value ~₹4,200–₹4,800 — Slightly overvalued

ABB trades at a premium, but PEG near 1 suggests valuation aligns with growth expectations.

🏢 Business Model & Competitive Edge

Segments: Electrification, Motion, Robotics & Automation, Industrial Solutions.

Strengths

Strong industrial automation and energy solutions portfolio.

Strategic partnerships (e.g., Siemens Gamesa, SAIL) and digital innovations like SCADAvantage

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Risks

Recent profit decline and FII outflows (-1.02%) may signal caution

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High valuation could limit upside in near term.

📉 Technical & Entry Zone

Current Price: ₹5,435

DMA 50/200: ₹5,330 / ₹5,806 — trading near short-term support.

RSI: 66.9 — approaching overbought.

MACD: 25.8 — bullish momentum.

Suggested Entry Zone: ₹4,800–₹5,100 range, ideally near ₹4,600 support if correction resumes.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for industrial growth exposure.

Wait for dips before fresh entry due to valuation.

Ideal for long-term only if

Revenue growth sustains above 10% CAGR.

Profit margins stabilize and quarterly earnings rebound.

Would you like a peer comparison with Siemens India or a discounted cash flow model for ABB?

Sources

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stockanalysis.com

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stockpricearchive.com

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Capital Market | MSN

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