ABB India Ltd. share price target

ABB revenue grew by 17% on the back of strong growth in Power Grid (PG) segment as the company has started booking High-Voltage Direct Current (HVDC) revenues and higher traction in Robotics and Motion (RM) which grew by 20% in Q1CY18. Industrial Automation (IA) was flat and Electrification products (EP) was down by 5% in quarter.

ABB India's revenue grew by 17.4% YoY to Rs25.2bn in 1QCY18 led by better performance by Power Grids and Robotics & Motion divisions. While revenue from Industrial Automation marginally grew by 1.2% YoY, revenue from Electrification Products dipped by ~5.5% YoY. Its PAT grew by 13.9% YoY to Rs1.0bn owing to better operating performance despite reduced other income and higher tax outgo. Notably, correcting by ~20% in last 3 months, the stock now trades at attractive valuation. Hence, we change our recommendation to BUY from HOLD...

Revenue fell by 8.93% to Rs. 2495.1 Cr in Q1CY18 when compared to the previous quarter. ABB India Ltd Q1CY18 results Comment

1QCY18 revenue rose 17.4% to INR25.3b, broadly in line with our estimate of INR25.8b. EBIDTA margin of 7.5% (flat YoY) was below our estimate of 9.6%. EBITDA grew 17.4% YoY to INR1.9b, below our estimate of INR2.5b, impacted by an adverse revenue mix, an increase in raw material prices and strengthening of EUR. PAT of INR1.0b, too, missed our estimate of INR1.4b

Improving financials, but outgo to group rises 4x in 10 years We read ABB India's CY17 annual report and the key takeaways are as follows: a) healthy free cash flow generation continued as FCF yield stood at 1.5%, led by improvement in the NWC cycle, b) gross margins scaled up to 10-year highs, but a 4x jump in outgo to parent/group entities from 1.9% to 7.7% of sales has led to moderate growth in EBITDA/PAT (6%/12% in CY17 and -0.6%/-2.3% CAGR over the last 10 years), c) management indicates an improved outlook due to increased opportunities in transportation (railway modernisation and EV charging infra), energy efficiency, service income, renewables (although margins may...

Revenue grew by 44.8% to Rs. 2739.79 Cr in Q4CY17 when compared to the previous quarter. ABB India Ltd Q4CY17 results comment

ABB's Q4CY17 (December year ending) order inflow at Rs 29 bn was up 45% YoY excluding the large HVDC order of ~Rs 36 bn year ago. Order inflow was driven by strong growth in base orders (up 13% YoY), exports and services. Order backlog at Rs 115 bn was down 2% YoY.

Order Book Continues to Remain Robust; Fairly Valued ABB India's revenue grew by 11% YoY to Rs27.3bn, led by better performance by Power Grids and Industrial Automation business. While revenue from Robotics remained flat, electrification revenue declined by ~10% YoY. Its PAT grew by a soft 5% YoY to Rs1.7bn on the back of weaker operating performance and reduced other income despite lower interest cost and tax outgo. Notably, the stock has witnessed a sharp rally since our initiation report with BUY recommendation in Jan'17. Hence, we change our recommendation to HOLD with an...

Growth in Power grids (+15%) and Industrial automation (+9%) segments led to revenue growth of 11% while earnings expanded only by 5% due to drop in gross margins, lower other income and higher tax outgo in Q4CY17. CY17 order inflowwas higher by 19% and order backlog was higher by 44% at Rs. 115 Bn which offers revenue visibility ~ 1.3x till CY18

ABB sees stronger order inflow from railways/sub-station for electric transport. Further, company is digitalization as theme picking up: be it smart factory pilots or remote monitoring solutions, ABB sees stronger action from cement/pharma/oil...