Why is ABB India Ltd ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- Healthy long term growth as Operating profit has grown by an annual rate 68.84%
- Company has a low Debt to Equity ratio (avg) at 0 times
- The company has been able to generate a Return on Capital Employed (avg) of 88.60% signifying high profitability per unit of total capital (equity and debt)
2
Majority shareholders : Promoters
3
Market Beating performance in long term as well as near term
- Along with generating 20.51% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
4
With its market cap of Rs 1,35,507 cr, it is the biggest company in the sector and constitutes 30.67% of the entire sector
- Its annual Sales of Rs 13,202.73 are 13.69% of the industry
How much should you buy?
- Overall Portfolio exposure to A B B should be less than 10%
- Overall Portfolio exposure to Heavy Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Heavy Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is A B B for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
A B B
21.19%
0.80
25.77%
Sensex
2.2%
0.08
12.28%
Quality key factors
Factor
Value
Sales Growth (5y)
17.80%
EBIT Growth (5y)
68.84%
EBIT to Interest (avg)
89.09
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.72
Sales to Capital Employed (avg)
1.72
Tax Ratio
25.14%
Dividend Payout Ratio
50.00%
Pledged Shares
0
Institutional Holding
16.80%
ROCE (avg)
69.74%
ROE (avg)
19.73%
Valuation Key Factors 
Factor
Value
P/E Ratio
81
Industry P/E
61
Price to Book Value
18.84
EV to EBIT
68.68
EV to EBITDA
63.79
EV to Capital Employed
64.97
EV to Sales
9.87
PEG Ratio
NA
Dividend Yield
0.68%
ROCE (Latest)
94.60%
ROE (Latest)
23.20%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
1What is working for the Company
NET SALES(Q)
Highest at Rs 3,557.01 cr
-4What is not working for the Company
PBT LESS OI(Q)
At Rs 502.73 cr has Fallen at -19.18%
PAT(Q)
At Rs 435.43 cr has Fallen at -18.5%
Loading Valuation Snapshot...
Here's what is working for A B B
Net Sales - Quarterly
Highest at Rs 3,557.01 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for A B B
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 502.73 cr has Fallen at -19.18%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 435.43 cr has Fallen at -18.5%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)






