6051.5000 20.00 (0.33%)
NSE Jun 06, 2025 15:31 PM
Volume: 336.3K
 

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ABB India Ltd.
15 Nov 2019
6051.50
0.33%
HDFC Securities
ABB is well placed to benefit from capex led economic expansion. Government initiative on tax reduction augurs well over long term for developing India into a global manufacturing hub. India enjoys both domestic demand and labour arbitrage vs. global supply chain. Manufacturing shifts take time and near term weak economic outlook poses re-rating headwinds. We recommend NEU on ABB. Key risks (1) Delays in Government capex recovery, (2) Slowdown in private investments, (3) INR depreciation, and (4) Any adverse corporate action. We recommend NEU on ABB India Ltd. (ABB) with SOTP based TP of Rs 1,534/sh (42x ABB, 30x Power Grids discontinued business). Whilst ABB is well placed to cater to Automation/Motion/Electrical segments, demand headwinds and punchy valuation limits further re-rating. Strong balance sheet, Automation Products/Solutions expertise and cross cycles experience limits downside.
ABB India Ltd. is trading below its 150 day SMA of 6132.0
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