ABB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | ABB | Market Cap | 1,21,599 Cr. | Current Price | 5,740 ₹ | High / Low | 6,300 ₹ |
| Stock P/E | 68.8 | Book Value | 340 ₹ | Dividend Yield | 0.77 % | ROCE | 38.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,163 ₹ | DMA 200 | 5,408 ₹ |
| Chg in FII Hold | -0.65 % | Chg in DII Hold | 0.84 % | PAT Qtr | 409 Cr. | PAT Prev Qtr | 352 Cr. |
| RSI | 70.6 | MACD | 131 | Volume | 5,29,643 | Avg Vol 1Wk | 8,33,138 |
| Low price | 4,590 ₹ | High price | 6,300 ₹ | PEG Ratio | 1.09 | Debt to equity | 0.01 |
| 52w Index | 67.2 % | Qtr Profit Var | -7.17 % | EPS | 83.2 ₹ | Industry PE | 40.7 |
📊 ABB shows strong fundamentals with high ROCE (38.6%) and ROE (28.8%), supported by low debt (0.01). The stock is trading above both its 50 DMA (5,163 ₹) and 200 DMA (5,408 ₹), indicating bullish momentum. However, the RSI at 70.6 suggests overbought conditions, and the quarterly profit variation (-7.17%) raises caution. The valuation (P/E 68.8 vs industry 40.7) is on the higher side, which limits upside potential in the short term.
✅ Optimal Entry Price: Around 5,400–5,500 ₹ (near 200 DMA support)
🚪 Exit Strategy if Holding: Consider exiting near 6,200–6,300 ₹ resistance zone or if price falls below 5,150 ₹ support.
Positive
- Strong ROCE (38.6%) and ROE (28.8%) highlight operational efficiency.
- Low debt-to-equity ratio (0.01) ensures financial stability.
- Consistent PAT growth from 352 Cr. to 409 Cr. in recent quarters.
- Stock trading above both 50 DMA and 200 DMA confirms bullish trend.
Limitation
- High P/E (68.8) compared to industry average (40.7).
- RSI at 70.6 indicates overbought levels, risk of short-term correction.
- Quarterly profit variation (-7.17%) shows earnings volatility.
- FII holdings decreased (-0.65%), signaling reduced foreign investor confidence.
Company Negative News
- Recent decline in quarterly profit (-7.17%) despite strong fundamentals.
- Trading volumes lower than average (5.29 lakh vs 8.33 lakh), showing reduced momentum.
Company Positive News
- Strong quarterly PAT (409 Cr.) compared to previous quarter (352 Cr.).
- DII holdings increased (+0.84%), showing domestic institutional support.
- PEG ratio of 1.09 suggests reasonable growth relative to valuation.
Industry
- Industry P/E is 40.7, lower than ABB’s valuation, indicating premium pricing.
- Sector outlook remains strong with infrastructure and industrial demand growth.
Conclusion
⚠️ ABB is a moderately good candidate for swing trading with strong fundamentals and bullish technicals. Entry near 5,400–5,500 ₹ offers a safer risk-reward setup. Exit near 6,200–6,300 ₹ or on breakdown below 5,150 ₹. Traders should be cautious of overbought RSI levels and high valuation, which may trigger short-term corrections