ABB - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | ABB | Market Cap | 1,52,182 Cr. | Current Price | 7,180 ₹ | High / Low | 7,825 ₹ |
| Stock P/E | 99.9 | Book Value | 370 ₹ | Dividend Yield | 0.55 % | ROCE | 29.9 % |
| ROE | 22.4 % | Face Value | 2.00 ₹ | DMA 50 | 6,815 ₹ | DMA 200 | 6,146 ₹ |
| Chg in FII Hold | 0.55 % | Chg in DII Hold | 0.13 % | PAT Qtr | 342 Cr. | PAT Prev Qtr | 420 Cr. |
| RSI | 61.2 | MACD | 80.9 | Volume | 2,52,525 | Avg Vol 1Wk | 2,87,529 |
| Low price | 4,638 ₹ | High price | 7,825 ₹ | PEG Ratio | 3.36 | Debt to equity | 0.01 |
| 52w Index | 79.8 % | Qtr Profit Var | -25.2 % | EPS | 140 ₹ | Industry PE | 38.8 |
ABB shows decent potential for swing trading. Technical indicators (RSI 61.2, MACD positive, price above 50DMA and 200DMA) suggest bullish momentum. Fundamentals are strong with high ROCE (29.9%) and ROE (22.4%), supported by very low debt (0.01). However, the high P/E (99.9 vs industry 38.8) and declining quarterly profit (-25.2%) raise caution. The optimal entry price is near 6,800–6,850 ₹ (DMA support). If already holding, consider exiting near 7,750–7,800 ₹, close to recent highs, unless momentum continues strongly.
✅ Positive
- 📈 Strong ROCE (29.9%) and ROE (22.4%), showing efficient capital use.
- 💹 Price trading above both 50DMA and 200DMA, confirming bullish trend.
- 📊 Very low debt-to-equity ratio (0.01), reducing financial risk.
- 📈 Increase in FII holding (+0.55%) and DII holding (+0.13%), showing investor confidence.
⚠️ Limitation
- 📉 Very high P/E (99.9) compared to industry average (38.8).
- 📊 Quarterly profit decline (-25.2%), showing earnings pressure.
- 📉 Dividend yield low at 0.55%, limiting income potential.
- 📊 PEG ratio (3.36) indicates expensive valuation relative to growth.
📰 Company Negative News
- 📉 Quarterly PAT dropped to 342 Cr from 420 Cr, showing earnings slowdown.
🌟 Company Positive News
- 📈 Strong EPS (140 ₹), reflecting profitability.
- 📊 Continued investor interest with FII and DII stake increases.
🏭 Industry
- 📊 Industry PE at 38.8, much lower than ABB’s 99.9, highlighting overvaluation risk.
- 📈 Capital goods and engineering sector showing strong demand but valuations stretched.
📌 Conclusion
ABB is technically strong and fundamentally efficient, but valuations are stretched. It can be considered for short-term swing trades with entry near support (6,800–6,850 ₹) and exit near resistance (7,750–7,800 ₹). Long-term investors may need to be cautious due to high valuation and recent profit decline.
Would you like me to extend this with a sector growth outlook or a peer comparison to refine the swing trade strategy?