ABB India Ltd, incorporated in the year 1949, is a Large Cap company with a market cap of Rs 29263.49 Crore, operating in Engineering sector.
ABB India’s key Products/Revenue Segments include Switch Gear Items, Electronic Control And Supply Units For Variable Speed Drives, Motors/Alternators/Generators, Others, Erection & Other Services, Other Operating Revenue, Scrap, Commission for the year ending 31-Dec-2020.
Investment Rationale
According to Motilal Oswal, ABB is a pure play on the long-term industrial automation and ‘Make-in-India’ theme, and stands to benefit from the ongoing PLI-driven increase in manufacturing across the country. Motilal has largely maintained its CY21E/CY22E estimates. While the recent statewide lockdowns remain a concern, it expects a quick recovery in short-cycle businesses. Motilal Oswal maintains its buy rating, with a target price of Rs 1,565 per share (55x Mar’23E EPS). It expects the company’s premium valuations to sustain in the near term, given the growing opportunity in the manufacturing space in India.
Financials
For the quarter ended 31-03-2021, the company has reported a Standalone Total Income of Rs 1654.41 Crore, down 3.54 per cent from last quarter’s Total Income of Rs 1715.13 Crore and up 5.51 per cent from last year same quarter’s Total Income of Rs 1568.02 Crore. Company has reported net profit after tax of Rs 141.33 Crore in latest quarter.
