ABB India
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
ABB India is navigating a complex landscape characterized by strong demand in electrification and data centers, which are driving revenue growth despite significant margin pressures from volatile commodity prices and currency fluctuations. Management's focus on local manufacturing and strategic investments in capacity expansion are expected to enhance competitive positioning and support long-term growth. However, the company faces challenges from intense competition and a lag in price adjustments, which could hinder margin recovery. Vista's financial outlook reflects stable revenue growth aligned with historical performance, but margins are anticipated to remain under pressure, leading to a cautious investment stance. The automation industry's growth trajectory, bolstered by increased private sector capital expenditure, provides a favorable backdrop, yet competitive dynamics necessitate vigilance. Over the next 12-24 months, key opportunities include expanding into Tier-2 and Tier-3 markets and leveraging a robust order backlog, while watchpoints include managing input cost inflation and geopolitical uncertainties that could impact execution timelines
Why We Like This Stock
- Strong order inflows in electrification and data centers are driving revenue growth
- Strategic investments in local manufacturing and capacity expansion support long-term growth potential
- A robust order backlog provides visibility for future revenue generation
Things To Watch Out For
- Margin pressures from volatile commodity prices and currency fluctuations are significant challenges
- Intense competition, particularly from Chinese firms, is impacting pricing strategies and profitability
- Geopolitical uncertainties and supply chain disruptions could affect execution timelines and revenue recognition
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 10,447 | 12,188 | 13,203 | 14,116 | 16,078 |
| Profit Before Tax (Cr.) | 1,666 | 2,519 | 2,230 | 2,127 | 2,581 |
| PBT Margin | 15.9% | 20.7% | 16.9% | 15.1% | 16.1% |
| Net Profit (Cr.) | 1,234 | 1,880 | 1,668 | 1,595 | 1,936 |
| Earnings Per Share | 58.3 | 88.7 | 78.7 | 75.3 | 91.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ▼ Sell | 6,075 | 07-Sep-2026 |
| Geojit Financials | ▼ Reduce | 6,694 | 26-Aug-2026 |
| Moneycontrol | ▼ Underweight | nan | 24-Aug-2026 |
| Macguire | ▼ Underperform | 6,100 | 04-Aug-2026 |
| Nomura | ▼ Reduce | 6,500 | 04-Aug-2026 |
| Emkay Global | ▼ Reduce | 7,600 | 03-Aug-2026 |
| HSBC | ▼ Reduce | 5,400 | 03-Aug-2026 |
| ICICI Securities | ► Hold | 7,550 | 03-Aug-2026 |
| JPMorgan | ► Neutral | 6,751 | 03-Aug-2026 |
| Prabhudas Liladhar | ► Hold | 6,944 | 03-Aug-2026 |
| Motilal Oswal | ► Neutral | 6,700 | 01-Aug-2026 |
| UBS | ▲ Buy | 8,030 | 17-Jul-2026 |
| BofA | ▼ Reduce | 5,200 | 11-May-2026 |
| Jeffries | ▼ Underperform | 5,915 | 11-May-2026 |
| Elara Capital | ▼ Reduce | 6,180 | 10-May-2026 |
| HDFC Securities | ► Add | 5,950 | 10-Apr-2026 |
Company Overview
Show Company Profile
ABB India Limited develops and sells products and system solutions to utilities, industries, channel partners, and original equipment manufacturers in India and internationally. It operates through Motion, Robotics and Discrete Automation, Electrification, and Process Automation segments. The Motion segment offers motors, generators, and drives that provide power, motion, and control for a range of automation applications; as well as solutions and related services. Its 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. Its 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 headquartered in Bengaluru, India. ABB India Limited operates as a subsidiary of ABB Asea Brown Boveri Ltd