ABB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | ABB | Market Cap | 1,31,707 Cr. | Current Price | 6,214 ₹ | High / Low | 6,555 ₹ |
| Stock P/E | 78.9 | Book Value | 370 ₹ | Dividend Yield | 0.63 % | ROCE | 29.9 % |
| ROE | 22.4 % | Face Value | 2.00 ₹ | DMA 50 | 5,801 ₹ | DMA 200 | 5,569 ₹ |
| Chg in FII Hold | -0.65 % | Chg in DII Hold | 0.84 % | PAT Qtr | 434 Cr. | PAT Prev Qtr | 409 Cr. |
| RSI | 57.4 | MACD | 171 | Volume | 2,21,246 | Avg Vol 1Wk | 4,82,396 |
| Low price | 4,590 ₹ | High price | 6,555 ₹ | PEG Ratio | 2.65 | Debt to equity | 0.01 |
| 52w Index | 82.6 % | Qtr Profit Var | -18.4 % | EPS | 78.7 ₹ | Industry PE | 31.3 |
📊 ABB shows strong fundamentals with excellent ROCE (29.9%), ROE (22.4%), and very low debt (0.01). Technical indicators are supportive: RSI at 57.4 and MACD positive (171), suggesting bullish momentum. The stock trades above both its 50 DMA (5,801 ₹) and 200 DMA (5,569 ₹), reinforcing strength. However, valuation is stretched with a P/E of 78.9 compared to industry average of 31.3, and quarterly profit variation (-18.4%) signals some earnings pressure.
💡 Optimal Entry Price: Around 5,750–5,850 ₹ (near DMA 50 support).
🚪 Exit Strategy (if already holding): Consider booking profits near 6,500–6,550 ₹ resistance zone unless strong breakout occurs.
✅ Positive
- High ROCE (29.9%) and ROE (22.4%) show strong operational efficiency.
- Debt-to-equity ratio of 0.01 indicates virtually no leverage risk.
- Large market cap (1,31,707 Cr.) ensures strong liquidity and institutional interest.
- Technical momentum is positive with RSI above 50 and MACD in green.
⚠️ Limitation
- High P/E (78.9) compared to industry average (31.3), suggesting premium valuation.
- Quarterly profit variation (-18.4%) indicates earnings volatility.
- Trading volume is lower than average, which may affect short-term liquidity.
📉 Company Negative News
- FII holdings decreased (-0.65%), showing reduced foreign investor confidence.
- Quarterly profit declined from 409 Cr. to 434 Cr. with weaker growth momentum.
📈 Company Positive News
- DII holdings increased (+0.84%), showing strong domestic institutional support.
- EPS at 78.7 ₹ remains healthy, supporting long-term valuation.
🏭 Industry
- Industry P/E is 31.3, much lower than ABB’s, highlighting its premium pricing.
- Sector outlook remains strong with infrastructure and industrial growth trends.
🔎 Conclusion
ABB is a fundamentally strong company with bullish technical signals, making it a decent swing trade candidate. Entry around 5,750–5,850 ₹ offers a favorable risk-reward setup. If already holding, consider exiting near 6,500–6,550 ₹ unless momentum continues strongly beyond resistance.