According to the latest exchange data, there are currently 59 stocks that boast a market capitalisation exceeding ₹one lakh crore. With their remarkable performance, ABB India shares are currently 7.2% away from entering the ₹one lakh crore m-cap club.
From their April 2023 low of ₹3,141 apiece, the shares of ABB India have witnessed a one-way spike, rallying 40% to trade at the current level of ₹4,399 apiece. During this period, the market capitalisation of ABB India moved to ₹93,258 crore from ₹66,589 crore.
In the previous trading session, the stock soared 5% to register a new historic high of ₹4,678. When considering the stock's highest price, its market capitalisation touched ₹99,173 crore, edging it closer to the ₹one lakh crore milestone.
In CY23, so far, the stock has generated a return of nearly 64%. Long-term investors have been rewarded even more handsomely, as shares have risen from ₹900 apiece to the current level of ₹4,399, generating a phenomenal return of 389% in 3 years. In comparison, the Nifty 50 index has gained 74% in the same time frame.
ABB India Limited develops and sells products and system solutions to utilities, industries, channel partners, and original equipment manufacturers in India and internationally. The company operates through Motion, Robotics and Discrete Automation, Electrification, and Process Automation segments.
The company was formerly known as ABB Limited and changed its name to ABB India Limited in June 2013.
In August, the company secured a major automation contract from Reliance Life Sciences (RLS) to automate their new manufacturing plants in Nashik, Maharashtra. Prior to this, in June the company was appointed to provide electrification and automation systems for ArcelorMittal Nippon Steel India’s advanced steel cold rolling mill (CRM) in Hazira, Gujarat.
Looking at the financials, the company reported another stellar set of earnings in Q2CY23, with a 22% YoY growth in revenue, 75% YoY growth in EBITDA, led by 420 basis points YoY expansion in the margin, and a 101% YoY increase in profit.
Order inflow in Q2CY23 grew 10% YoY to ₹3,044 crore, driven by a good mix of emerging and traditional segments. The order backlog grew 29% YoY to ₹7,727 crore.
The company reported an EPS of ₹13.96 for the quarter, reflecting the growth in profitability of the operations. Its cash position continued to remain robust at ₹4,092 crore at the end of Q2 and H1 2023.
Following the company's Q2CY23 performance, brokerage firm ICICI Securities maintained its 'add' rating on the stock with a target price of ₹4,920 apiece. The brokerage believes ABB is best positioned to cater to new, expanding addressable opportunities emerging from a host of segments: electrification, renewables, automation, efficiency, and high-speed mobility.
Another brokerage firm, Prabhudas Lilladher, also holds a positive outlook on ABB given the company's increasing traction for energy-efficient products, changing customer preference towards value-added products, the company's diverse business model, focus on high growth segments (Electronics, Data centre) and a robust order pipeline.
The brokerage has raised its target price to ₹5,013 apiece from the previous target price of ₹4,119, maintaining an 'accumulate' rating following ABB's Q2CY23 performance.
28 analysts polled by MintGenie on average have a 'hold' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie. We advise investors to check with certified experts before making any investment decisions.