Why is A B B falling/rising?

Sep 01 2025 10:12 PM IST
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As of 01-Sep, ABB India Ltd's stock price is Rs 5,123.95, up 2.7% today after three days of decline, but it has underperformed over the past month and year-to-date. Despite strong long-term fundamentals, recent quarterly results show a 20.3% decline in profit, raising concerns about valuation and profitability.
As of 01-Sep, ABB India Ltd's stock price is currently at Rs 5,123.95, reflecting an increase of Rs 134.5 or 2.7%. Today's performance indicates a trend reversal as the stock has gained after three consecutive days of decline. It outperformed its sector by 0.72% and reached an intraday high of Rs 5,139.95, marking a 3.02% increase. However, despite this positive movement, the stock has underperformed over the past month with a decline of 5.07%, and a significant year-to-date drop of 25.95%. The company has a low debt-to-equity ratio and strong long-term fundamentals, with an impressive annual growth rate in operating profit of 58.98%. Nonetheless, recent quarterly results show a decline in profit after tax by 20.3%, which raises concerns about its valuation and profitability.

In the broader market context, ABB India Ltd's recent performance contrasts sharply with the benchmark Sensex, which has seen a decline of 1.56% over the past week. While the stock has shown a short-term recovery, its long-term performance remains concerning, with a year-over-year decline of 35.43% compared to the Sensex's drop of only 2.43%. This underperformance highlights the stock's volatility and the challenges it faces in maintaining investor confidence, especially given its high price-to-book ratio and the significant fall in its quarterly profits.
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