ABB India Receives 'Buy' Rating from MarketsMOJO, Shows Strong Financial Performance and Dominant Position in Electric Equipment Sector

ABB India, a leading electric equipment company in India, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as the company has consistently shown positive results for the last 14 quarters and has a low Debt to Equity ratio of 0 times on average.
One of the key factors contributing to this 'Buy' rating is the company's strong operating cash flow, which was at its highest at Rs 1,351.48 crore. Additionally, ABB India's dividend per share (DPS) has also been consistently increasing, with the latest DPS at Rs 23.80. The company's net sales have also seen a growth of 20.15% in the last half year.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement in its trend from mildly bullish on 08-Oct-24. Multiple technical indicators such as MACD, Bollinger Band, KST, and OBV are also showing a bullish trend for the stock.

Moreover, ABB India has majority shareholders in the form of promoters, which adds to the confidence in the company's performance. The company has also shown consistent returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

With a market cap of Rs 1,64,187 crore, ABB India is the largest company in the electric equipment sector, constituting 47.61% of the entire sector. Its annual sales of Rs 11,437.90 crore also make up 19.35% of the industry.

However, there are some risks associated with investing in ABB India. The company has a high ROE of 25.4, which makes its valuation very expensive with a price to book value of 27.2. The stock is currently trading at a discount compared to its historical valuations. Additionally, while the stock has generated a return of 97.25% in the last year, its profits have only increased by 58.6%, resulting in a PEG ratio of 1.8.

Overall, ABB India's strong financial performance, consistent returns, and dominant position in the sector make it a promising investment opportunity. However, investors should also consider the risks associated with the stock before making any investment decisions.