ABB India Limited (ABB) AI Stock Analysis

• Market Cap: ₹1.12T
• Dividend Yield: 0.82%
• Average Volume (3M): 10.92K
• Price to Earnings (P/E): 63.4
• Beta (1Y): 1.45
• Revenue Growth: 12.35%
• EPS Growth: 4.87%
• Country: IN
• Employees: 3,625
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 19.30
• Shares Outstanding: 211,908,370
• 10 Day Avg. Volume: 12,255
• 30 Day Avg. Volume: 10,922
• PEG Ratio: 1.56
• Price to Book (P/B): 20.70
• Price to Sales (P/S): 12.12
• P/FCF Ratio: 131.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹4,750.00
• Price Target Upside: -9.94% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹5,658.00 ▲(7.27% Upside)

The overall stock score of 67 reflects strong financial performance, characterized by robust revenue growth and balance sheet stability. However, the technical analysis indicates neutral momentum, and the valuation suggests the stock is overvalued, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and successful product adoption, supporting long-term business sustainability.

Balance Sheet Stability

A stable balance sheet with low leverage reduces financial risk, providing a solid foundation for future investments and growth.

Cash Flow Management

Strong cash flow management ensures the company can fund operations, pay dividends, and invest in growth opportunities, enhancing long-term viability.

Negative Factors

Overvaluation Concerns

High valuation ratios may limit future stock price appreciation and pose risks if growth expectations are not met.

Low Dividend Yield

A low dividend yield may deter income-focused investors, potentially affecting stock demand and price stability.

Neutral Technical Indicators

Neutral technical indicators suggest a lack of clear market direction, which can lead to investor uncertainty and potential volatility.

ABB India Limited Business Overview & Revenue Model

Company Description

ABB India Limited develops and sells products and system solutions to utilities, industries, channel partners, and original equipment manufacturers in India and internationally. The company operates through Motion, Robotics and Discrete Automation, Electrification, and Process Automation segments. The Motion segment produces and provides motors, generators, and drives that provide power, motion, and control for a range of automation applications; and offers solutions and related services. The Robotics and Discrete Automation segment provides value-added solutions in robotics, machine, and factory automation. The Electrification segment offers a range of digital and connected solutions for low- and medium-voltage applications, including EV infrastructure, solar inverters, modular substations, distribution automation, power protection, wiring accessories, switchgear, enclosures, cabling, sensing, and control products. The Process Automation segment provides products, systems, and services, such as turnkey engineering, control systems, measurement products, life cycle services, outsourced maintenance, and industry specific products for the optimization of the productivity of industrial processes in oil and gas, power, chemicals and pharmaceuticals, pulp and paper, metals and minerals, marine, and turbocharging industries. The company was formerly known as ABB Limited and changed its name to ABB India Limited in June 2013. ABB India Limited was incorporated in 1949 and is based in Bengaluru, India. ABB India Limited is a subsidiary of ABB Asea Brown Boveri Ltd.

How the Company Makes Money

ABB India Limited generates revenue through multiple streams, primarily by selling products and providing services across its core sectors. Key revenue streams include the manufacturing and distribution of electrical equipment such as switchgear, transformers, and wiring accessories, as well as automation solutions that enhance industrial processes. The company also earns income from service contracts, maintenance, and upgrades for its installed systems. Additionally, ABB India engages in strategic partnerships and collaborations with other companies and government entities, which can lead to large-scale projects and contracts that significantly contribute to its earnings. The increasing demand for automation and digitalization solutions in various industries further bolsters ABB's revenue potential, allowing it to tap into emerging markets and technological advancements.

ABB India Limited Financial Statement Overview

Summary

ABB India Limited presents a compelling financial profile characterized by strong revenue growth, profitability, and balance sheet stability. The income statement highlights efficient operations and robust margins, while the balance sheet reflects a solid financial structure with low leverage. Cash flow metrics underscore effective cash management and the capacity to sustain operations and growth.

Income Statement

ABB India Limited has shown strong revenue growth with a consistent upward trend in total revenue over the years. The gross profit margin is robust, indicating efficiency in production and pricing. Net profit margin has improved significantly, reflecting effective cost management. EBIT and EBITDA margins are healthy, highlighting strong operational performance. Overall, the income statement reflects a positive trajectory in financial performance, with sustained growth and profitability.

Balance Sheet

The company's balance sheet demonstrates financial stability, with a solid equity ratio indicating a strong equity foundation. The debt-to-equity ratio is low, signifying minimal reliance on debt financing and reduced financial risk. Return on equity is impressive, showcasing effective use of shareholder funds to generate profits. The balance sheet is well-positioned, with a strong equity base and controlled liabilities, supporting long-term financial health.

Cash Flow

ABB India Limited exhibits a healthy cash flow position, with consistent free cash flow generation. The operating cash flow to net income ratio is favorable, indicating efficient cash management and strong cash conversion. The free cash flow to net income ratio is robust, supporting dividend payments and reinvestment opportunities. Free cash flow growth is strong, demonstrating the company's ability to generate cash to fund operations and growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.00B	120.88B	103.67B	84.98B	68.64B	57.57B
Gross Profit	46.50B	45.83B	34.15B	26.79B	20.26B	17.03B
EBITDA	25.64B	26.58B	17.91B	14.79B	8.36B	4.35B
Net Income	17.95B	18.72B	12.42B	10.16B	5.20B	2.19B
Balance Sheet
Total Assets	128.00B	123.91B	110.01B	93.18B	80.73B	75.91B
Cash, Cash Equivalents and Short-Term Investments	52.62B	56.04B	48.15B	36.40B	26.85B	22.04B
Total Debt	732.20M	518.80M	489.80M	330.90M	366.60M	582.40M
Total Liabilities	56.05B	53.16B	50.57B	43.79B	40.28B	39.84B
Stockholders Equity	71.94B	70.75B	59.45B	49.39B	40.45B	36.06B
Cash Flow
Free Cash Flow	0.00	11.18B	11.68B	5.74B	4.77B	1.97B
Operating Cash Flow	0.00	13.32B	13.51B	7.42B	6.49B	3.18B
Investing Cash Flow	0.00	-5.03B	-33.52B	18.26B	-20.08B	4.42B
Financing Cash Flow	0.00	-7.70B	-2.69B	-1.40B	-1.27B	-1.52B

ABB India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5274.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ABB, the sentiment is Positive. The current price of 5274.5 is above the 20-day moving average (MA) of 5142.22, above the 50-day MA of 5149.76, and below the 200-day MA of 5401.47, indicating a neutral trend. The MACD of 19.26 indicates Negative momentum. The RSI at 59.72 is Neutral, neither overbought nor oversold. The STOCH value of 83.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ABB.

ABB India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HONAUT	74 Outperform	₹299.53B	58.04	―	0.31%	13.28%	-2.20%
CUMMINSIND	72 Outperform	₹1.27T	55.09	―	1.12%	20.23%	18.69%
SCHAEFFLER	69 Neutral	₹598.02B	56.14	―	0.73%	14.14%	16.91%
ABB	67 Neutral	₹1.12T	63.37	―	0.82%	12.35%	4.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BHEL	58 Neutral	₹993.78B	177.93	―	0.18%	13.30%	137.07%
THERMAX	58 Neutral	₹341.78B	54.42	―	0.49%	3.37%	-19.95%

ABB India Limited Corporate Events

ABB India Unveils Advanced Machinery Drive for Enhanced Automation

ABB India has launched the ACS380-E drive, a next-generation machinery drive designed to enhance automation-centric machine building with advanced connectivity, cybersecurity, and ease of commissioning. This launch aligns with India’s manufacturing shift towards digitalization and smart-factory upgrades, supporting industries such as textile, cable and wire, and plastics in meeting evolving regulatory standards and improving efficiency.

ABB India Unveils Advanced ACS380-E Machinery Drive

ABB India Limited has launched the ACS380-E, a next-generation machinery drive designed for high performance, connectivity, and cybersecurity. This product supports the digitalization and smart-factory upgrades in India’s manufacturing sector, offering advanced connectivity and easy commissioning. It is engineered for various industrial applications, helping machine builders meet evolving regulatory standards and improve operational efficiency.

ABB to Divest Robotics Division to SoftBank for $5.375 Billion

ABB has announced the divestment of its Robotics division to SoftBank Group for $5.375 billion, opting not to pursue a spin-off as initially planned. This strategic move is expected to create immediate value for shareholders and aligns with ABB’s capital allocation principles. The transaction, subject to regulatory approvals, is anticipated to close by mid-to-late 2026. The divestment will allow ABB to focus on its core strengths in electrification and automation while leveraging SoftBank’s expertise in AI and next-generation computing to enhance the Robotics division’s market position.