ABB India Ltd. share price target

We have reduced our consol earnings estimates by 6.3%/2.3% for CY19/20E factoring lower than expected margin in Industrial Automation & Power Grid(PG) business and slowdown in automotive sector. 2QCY19 numbers of ABB India were lower than our and street estimations, largely on the back of lower than expected revenue growth in Robotics & Motion and Industrial Automation. Management indicated sluggish offtake due to elections, weak macros being the key reasons for lower revenue growth. However, strong traction in exports partially neutralized the slowdown in the domestic market....

business, as it has entered into an agreement with Hitachi at the global level to sell this business. During the quarter, discontinued business revenue declined 6% YoY to INR908m and EBIT was down 45% YoY to INR0.5b with the margin contracting 380bp YoY to 5.5%. Margins supported by better revenue mix, operating leverage: The operating margin improved 220bp YoY to 7.9% in the quarter, supported by a better revenue mix, improved capacity utilization and operating leverage. The EBIT margin shrank for both industrial automation (-290bp to 10.1%)...

We are downgrading ABB India from Hold to Reduce given high valuations Change in Estimates | Target | Reco post recent run up (~19% in last three months) in stock price. ABB Ltd's (ABB's) CY18 annual report indicates that digitalization, automation and...

1 March 2019 Revenue increased 15% YoY to INR19.7b in 4QCY18. EBITDA grew 48% YoY to INR2.2b, while PAT increased 58% YoY to INR1.3b. For CY18, sales/EBIDTA/PAT from the continued business grew 6%/10%/13%. We note that ABB has shown power grid as a discontinued business as it has entered into an agreement with Hitachi at global level to sell this business. During the quarter, discontinued business revenue grew 6% YoY to INR11.6b, while EBIT/PAT declined 2.4%/22% YoY to INR1.1b/INR0.7b. Continued business gross margin expanded by 210bp YoY to 32.6% and operating margin by 250bp YoY to 11.0%, driven by (a) operating leverage on better execution, (b) improved revenue mix and (c) strong control over RM cost.

Zurich, Switzerland-based ABB Group will be selling its Global Power Grid business to Japan-based Hitachi at an enterprise value (EV) of ~USD11bn. The deal has been valued at an EV/EBITA of 11.2x. Press releases suggest that ABB Group plans to return cash proceeds of USD7.6-7.8bn from the transaction to shareholders through a share buyback, or a special dividend. We believe that the T&D; business has morphed into a mere converter of Raw Materials into Finished Goods from being a technology-driven business earlier. Given the intense competition and high dependence on a single group of buyers, i.e., Power Utilities, the...

ABB India Ltd Q2FY19 results Comment Revenue fell by 7.13% to Rs. 2489.61 Cr in Q3CY18 when compared to the previous quarter. On the other hand, it grew by 31.58% when compared with Q3CY17

Double-digit Growth in All Segments: ABB revenues grew by 31% to Rs. 25 bn and EPS expanded by ~ 30% to Rs. 5.1, higher than our expectation for Q3 by 16%.

ICICI Securities Ltd | Retail Equity Research ABB India reported stellar Q3CY18 results, which were above our estimates. Revenue grew growth 31.3% YoY at | 2515 crore as all segments delivered double digit revenue growth, viz. power grids, robotics and motion, electrification products and industrial automation grew 33.2%, 32.7%, 21.1% and 21.1%, respectively. We expected revenue of | 2350 crore for the quarter EBITDA grew 44.6% YoY to | 194 crore (our estimate: | 164 crore)...

Strong Growth Continues; Performance In-line; Maintain BUY ABB India (ABB) has delivered a robust performance in 3QCY18 (in-line both on top-line and bottom-line front), with its revenue rising by 30.7% YoY to Rs25.1bn led by strong growth by all business verticals i.e. Power Grids (+71.3% YoY), Robotics & Motion (+32.7% YoY), Electrification (+21.1% YoY) and Industrial Automation (+18.7% YoY). Its EBITDA margin rose by 70bps YoY to 7.7%, while reported PAT surged by 29.9% YoY to Rs1.08bn led by cost saving measures, differentiated portfolio-mix, digital value addition and higher sales. We maintain our BUY...