Risk factor
Negligible price volatility
Profitability factor
Very strong margins and returns
About
ABB India Limited specializes in designing and supplying a broad array of products and integrated system solutions. These offerings cater to a diverse clientele, including utility providers, various industrial sectors, channel partners, and original equipment manufacturers (OEMs), serving both the Indian domestic market and international clients. The company's operations are strategically divided into four main segments: Motion: This division manufactures and provides essential components like motors, generators, and drives, which are fundamental for enabling power, movement, and precise control across a multitude of automation applications. It also delivers comprehensive solutions and related support services. Robotics and Discrete Automation: This segment focuses on delivering advanced, value-added solutions in areas such as robotics, machine automation, and overall factory automation systems. Electrification: Offering a wide spectrum of digital and interconnected solutions for low- and medium-voltage needs, this segment's extensive portfolio includes electric vehicle charging infrastructure, solar inverters, modular substations, distribution automation systems, power protection devices, wiring accessories, switchgear, enclosures, cabling, and various sensing and control products. Process Automation: This division provides critical products, sophisticated systems, and extensive services – such as turnkey engineering, advanced control systems, measurement instruments, lifecycle support, outsourced maintenance, and specialized industry products – all aimed at optimizing the productivity of industrial processes. It serves vital sectors like oil and gas, power generation, chemicals and pharmaceuticals, pulp and paper, metals and minerals, marine, and turbocharging industries. Originally established in 1949, the company was known as ABB Limited before rebranding to ABB India Limited in June 2013. Headquartered in Bengaluru, India, ABB India Limited operates as a subsidiary of the global entity, ABB Asea Brown Boveri Ltd.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBI
Target Price
The average target price of ABB.NS is 6086 and suggests 10% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to d