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 40.07%
- The company is Net-Debt Free
- The company has been able to generate a Return on Capital Employed (avg) of 90.78% 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 48.54% 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 1,63,636 cr, it is the biggest company in the sector and constitutes 27.26% of the entire sector
- Its annual Sales of Rs 13,476.81 are 11.41% 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
48.54%
1.64
29.61%
Sensex
-2.63%
-0.19
13.57%
Quality key factors
Factor
Value
Sales Growth (5y)
16.18%
EBIT Growth (5y)
40.07%
EBIT to Interest (avg)
96.19
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.74
Sales to Capital Employed (avg)
1.72
Tax Ratio
25.24%
Dividend Payout Ratio
50.01%
Pledged Shares
0
Institutional Holding
17.56%
ROCE (avg)
69.74%
ROE (avg)
18.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
85
Industry P/E
0
Price to Book Value
20.88
EV to EBIT
91.45
EV to EBITDA
83.79
EV to Capital Employed
78.86
EV to Sales
11.71
PEG Ratio
10.95
Dividend Yield
0.51%
ROCE (Latest)
86.23%
ROE (Latest)
24.46%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
Bullish
Technical Movement
6What is working for the Company
PAT(Latest six months)
At Rs 1,084.43 cr has Grown at 34.44%
DPR(Y)
Highest at 50.01%
NET SALES(Q)
Highest at Rs 3,558.87 cr
-3What is not working for the Company
OPERATING CF(Y)
Lowest at Rs 1,219.52 Cr
Loading Valuation Snapshot...
Here's what is working for A B B
Profit After Tax (PAT) - Latest six months
At Rs 1,084.43 cr has Grown at 34.44%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 3,558.87 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 3,558.87 cr has Grown at 21.03%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Dividend Payout Ratio (DPR) - Annually
Highest at 50.01%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for A B B
Operating Cash Flow - Annually
Lowest at Rs 1,219.52 Cr and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)






