⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ABB - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | ABB | Market Cap | 1,34,270 Cr. | Current Price | 6,338 ₹ | High / Low | 6,555 ₹ |
| Stock P/E | 80.4 | Book Value | 370 ₹ | Dividend Yield | 0.62 % | ROCE | 29.9 % |
| ROE | 22.4 % | Face Value | 2.00 ₹ | DMA 50 | 5,784 ₹ | DMA 200 | 5,563 ₹ |
| Chg in FII Hold | -0.65 % | Chg in DII Hold | 0.84 % | PAT Qtr | 434 Cr. | PAT Prev Qtr | 409 Cr. |
| RSI | 63.0 | MACD | 184 | Volume | 2,98,182 | Avg Vol 1Wk | 5,78,847 |
| Low price | 4,590 ₹ | High price | 6,555 ₹ | PEG Ratio | 2.70 | Debt to equity | 0.01 |
| 52w Index | 89.0 % | Qtr Profit Var | -18.4 % | EPS | 78.7 ₹ | Industry PE | 33.5 |
📊 Core Financials
- Profitability: PAT improved from ₹409 Cr. to ₹434 Cr. (steady growth)
- Margins: Strong ROCE (29.9%) and ROE (22.4%) indicate solid efficiency
- Debt: Extremely low debt-to-equity ratio (0.01) shows robust financial health
- Cash Flow: Positive earnings trend supports sustainability
💰 Valuation Indicators
- P/E Ratio: 80.4 vs Industry PE of 33.5 → overvalued
- P/B Ratio: Current Price ₹6,338 vs Book Value ₹370 → ~17x book
- PEG Ratio: 2.70 → indicates growth priced at a premium
- Intrinsic Value: Current valuation stretched compared to fundamentals
🏢 Business Model & Health
- Market Cap: ₹1,34,270 Cr. reflects strong industry presence
- Dividend Yield: 0.62% provides modest shareholder return
- Competitive Advantage: Strong brand in industrial automation and electrification
- Overall Health: Excellent efficiency and profitability, but valuations are expensive
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹5,000–5,300 if market correction occurs
- Long-Term Holding: Suitable for long-term investors given strong fundamentals, but current price is stretched
✅ Positive
- High ROCE (29.9%) and ROE (22.4%) show strong operational efficiency
- Debt-to-equity ratio almost negligible (0.01)
- Consistent profitability with growing PAT
⚠️ Limitation
- High P/E ratio (80.4) compared to industry
- P/B ratio ~17x, indicating expensive valuation
- PEG ratio (2.70) suggests growth is priced at a premium
📉 Company Negative News
- FII holding decreased (-0.65%)
- Quarterly profit variation (-18.4%) shows some volatility
📈 Company Positive News
- DII holding increased (+0.84%)
- Stock trading well above DMA levels (50DMA ₹5,784, 200DMA ₹5,563)
🏭 Industry
- Industry PE: 33.5, much lower than ABB’s PE
- Sector benefits from industrial automation and electrification demand
🔎 Conclusion
ABB demonstrates strong efficiency, profitability, and minimal debt, making it a fundamentally sound company.
However, the stock trades at a premium valuation compared to industry peers.
While suitable for long-term holding due to its robust business model, investors should consider entering at lower levels to maximize returns.