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Last Updated on: 30 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 500002 | NSE: ABB

ABB India Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 29, 2024, 10:11 pm

Market Cap 1,45,092 Cr.
Current Price 6,847
High / Low 9,200/4,340
Stock P/E86.0
Book Value 299
Dividend Yield0.35 %
ROCE30.7 %
ROE22.9 %
Face Value 2.00
PEG Ratio2.64

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for ABB India Ltd

Competitors of ABB India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Evans Electric Ltd 110 Cr. 200 252/83.238.7 37.20.75 %36.4 %28.0 % 10.0
Epic Energy Ltd 87.5 Cr. 121 148/5.97117 10.00.00 %5.03 %5.49 % 10.0
Edvenswa Enterprises Ltd 178 Cr. 61.0 99.8/42.420.2 25.50.00 %23.5 %15.4 % 10.0
Cospower Engineering Ltd 79.0 Cr. 526 740/20087.8 49.80.00 %8.12 %1.54 % 10.0
Continental Controls Ltd 8.17 Cr. 13.3 18.5/5.81408 3.430.00 %7.82 %14.0 % 10.0
Industry Average14,941.05 Cr691.63140.0174.560.10%15.75%19.05%6.27

All Competitor Stocks of ABB India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,4251,7782,1021,9682,0532,1202,4272,4112,5092,7692,7573,0802,831
Expenses1,3381,5971,9161,7801,8541,9092,0632,1262,1602,3312,3402,5152,288
Operating Profit87181185188199211364285349439417565542
OPM %6%10%9%10%10%10%15%12%14%16%15%18%19%
Other Income3315101334198869727578718788
Interest2241327211845
Depreciation26292326252727272930333131
Profit before tax92165260494189270400328393485447617595
Tax %24%27%28%25%26%27%24%25%25%25%24%26%25%
Net Profit70120188373140198305245296363339459443
EPS in Rs3.325.668.8817.616.629.3214.4111.5613.9517.1215.9821.6720.93

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Sales7,5627,7197,7308,1368,6426,0946,6907,3155,8216,9348,56810,447
Expenses7,2127,2307,1547,4027,9325,6696,2246,7775,5536,3687,6008,957
Operating Profit3504895767347104254665382685669681,490
OPM %5%6%7%9%8%7%7%7%5%8%11%14%
Other Income7314612226733926170266506296
Interest5711612210610862602825191513
Depreciation941031131601511019390120103105120
Profit before tax2062723554755735286524452937111,3531,653
Tax %33%35%36%37%35%21%22%32%25%27%25%25%
Net Profit1371772293003744205113032195201,0161,242
EPS in Rs6.488.3510.7814.1517.6719.8224.1114.3210.3524.5347.9658.61
Dividend Payout %46%36%34%26%23%22%20%34%48%21%11%50%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year
YoY Net Profit Growth (%)
Change in YoY Net Profit Growth (%)

No data available for trend analysis.

Growth

Compounded Sales Growth
10 Years:3%
5 Years:9%
3 Years:22%
TTM:14%
Compounded Profit Growth
10 Years:21%
5 Years:20%
3 Years:93%
TTM:40%
Stock Price CAGR
10 Years:19%
5 Years:39%
3 Years:44%
1 Year:43%
Return on Equity
10 Years:13%
5 Years:14%
3 Years:18%
Last Year:23%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Jun 2024
Equity Capital42424242424242424242424242
Reserves2,5562,6352,7702,9663,2443,5653,9653,4783,5644,0034,8975,9026,299
Borrowings3286203716006006087145837334947
Other Liabilities3,5443,7523,6393,8003,8444,6735,0634,1673,9263,9914,3465,0085,315
Total Liabilities6,4707,0506,8227,4097,7318,8889,0777,7017,5908,0739,31811,00111,703
Fixed Assets1,2071,3921,4001,2981,2551,2198937427838178999941,005
CWIP1174732446811683597577696065
Investments5217161616271000049322
Other Assets5,0935,5945,3746,0506,3927,2828,1016,9006,7337,1797,8579,94610,632
Total Assets6,4707,0506,8227,4097,7318,8889,0777,7017,5908,0739,31811,00111,703

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity +-503304793828637926256673186507421,351
Cash from Investing Activity +-340-209-148-76-68-318151-398443-2,0081,826-3,352
Cash from Financing Activity +211119-42242-179-171-794-147-152-127-140-269
Net Cash Flow-179240-91347615302-17123609-1,4852,428-2,270

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Free Cash Flow22.00-131.00205.00134.00110.00-183.00459.00524.00210.00529.00935.00-48.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days1581531491521251669297106998989
Inventory Days6873677167111796883839890
Days Payable140154146159154261160150169185182179
Cash Conversion Cycle857271643815111520-25-0
Working Capital Days5955535637-4-9713-3-4-3-9
ROCE %10%13%15%17%17%15%17%14%7%16%23%31%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs3.49%3.76%3.68%3.53%5.39%7.55%8.45%9.46%10.18%10.72%11.89%12.06%
DIIs6.96%8.03%8.22%8.59%11.89%9.73%8.98%8.07%7.37%6.92%5.95%5.64%
Public14.55%13.21%13.10%12.88%7.69%7.71%7.56%7.48%7.47%7.36%7.15%7.29%
No. of Shareholders78,99680,46483,18789,7391,05,20597,7571,06,3961,09,4351,12,3991,02,0931,02,5571,32,505

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Midcap Fund857,4801.63400.58275,0002024-12-28211.81%
Canara Robeco Emerging Equities675,4541.59315.55275,0002024-12-28145.62%
Motilal Oswal Flexi Cap Fund450,0002.3210.22275,0002024-12-2863.64%
SBI Magnum Equity ESG Fund388,0003.31181.26275,0002024-12-2841.09%
Nippon India Large Cap Fund375,0000.82175.19275,0002024-12-2836.36%
Canara Robeco Flexi Cap Fund296,0001.19138.28275,0002024-12-287.64%
Axis Bluechip Fund286,9430.41134.05275,0002024-12-284.34%
Nippon India Multi Cap Fund275,0000.5128.47275,0002024-12-280%
Canara Robeco Bluechip Equity Fund272,5001.08127.3275,0002024-12-28-0.91%
Motilal Oswal Focused Fund204,5405.1995.55275,0002024-12-28-25.62%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthDec 12Dec 11
FaceValue2.002.00
Basic EPS (Rs.)6.658.72
Diluted EPS (Rs.)6.658.72
Cash EPS (Rs.)11.1012.47
Book Value[Excl.RevalReserv]/Share (Rs.)122.78119.61
Book Value[Incl.RevalReserv]/Share (Rs.)122.78119.61
Revenue From Operations / Share (Rs.)359.15351.67
PBDIT / Share (Rs.)16.4617.85
PBIT / Share (Rs.)12.0214.09
PBT / Share (Rs.)9.9812.65
Net Profit / Share (Rs.)6.658.72
NP After MI And SOA / Share (Rs.)6.658.72
PBDIT Margin (%)4.585.07
PBIT Margin (%)3.344.00
PBT Margin (%)2.773.59
Net Profit Margin (%)1.852.47
NP After MI And SOA Margin (%)1.852.47
Return on Networth / Equity (%)5.417.28
Return on Capital Employeed (%)9.7511.73
Return On Assets (%)2.162.92
Total Debt / Equity (X)0.120.00
Asset Turnover Ratio (%)1.180.00
Current Ratio (X)1.251.28
Quick Ratio (X)1.011.03
Inventory Turnover Ratio (X)5.040.00
Dividend Payout Ratio (NP) (%)45.1034.41
Dividend Payout Ratio (CP) (%)27.0324.05
Earning Retention Ratio (%)54.9065.59
Cash Earning Retention Ratio (%)72.9775.95
Interest Coverage Ratio (X)8.0712.33
Interest Coverage Ratio (Post Tax) (X)4.267.02
Enterprise Value (Cr.)15082.3212108.38
EV / Net Operating Revenue (X)1.981.62
EV / EBITDA (X)43.2432.01
MarketCap / Net Operating Revenue (X)1.951.66
Retention Ratios (%)54.8965.58
Price / BV (X)5.704.88
Price / Net Operating Revenue (X)1.951.66
EarningsYield0.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of ABB India Ltd as of December 30, 2024 is: 5,909.12

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 30, 2024, ABB India Ltd is Overvalued by 13.70% compared to the current share price 6,847.00

Intrinsic Value of ABB India Ltd as of December 30, 2024 is: 7,833.01

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 30, 2024, ABB India Ltd is Undervalued by 14.40% compared to the current share price 6,847.00

Last 5 Year EPS CAGR: 32.56%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.25%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 12.75, which is a positive sign.
  3. The company has higher reserves (3,834.15 cr) compared to borrowings (259.38 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (7.08 cr) and profit (376.00 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 32.83, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in ABB India Ltd:
    1. Net Profit Margin: 1.85%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 9.75% (Industry Average ROCE: 15.75%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 5.41% (Industry Average ROE: 19.05%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.26
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.01
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 86 (Industry average Stock P/E: 140.01)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.12
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

ABB India Ltd. is a Public Limited Listed company incorporated on 24/12/1949 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L32202KA1949PLC032923 and registration number is 032923. Currently Company is involved in the business activities of Manufacture of other electrical equipment. Company’s Total Operating Revenue is Rs. 6934.00 Cr. and Equity Capital is Rs. 42.38 Cr. for the Year ended 31/12/2021.
INDUSTRYADDRESSCONTACT
Electric Equipment - General3rd Floor, Plot No. 5 & 6, Bengaluru Karnataka 560058investor.helpdesk@in.abb.com
http://www.abb.com
Management
NamePosition Held
Mr. Adrian GuggisbergChairman
Mr. Sanjeev SharmaManaging Director
Mrs. Carolina Yvonne GranatDirector
Ms. Gopika PantIndependent Director
Mr. V K ViswanathanIndependent Director
Ms. Monica WidhaniIndependent Director

FAQ

What is the latest intrinsic value of ABB India Ltd?

The latest intrinsic value of ABB India Ltd as on 30 December 2024 is ₹5909.12, which is 13.70% lower than the current market price of ₹6,847.00. The stock has a market capitalization of 1,45,092 Cr. and recorded a high/low of 9,200/4,340 during the current fiscal year 2024-2025. As of Jun 2024, the company has reserves of ₹6,299 Cr and total liabilities of ₹11,703 Cr.

What is the Market Cap of ABB India Ltd?

The Market Cap of ABB India Ltd is 1,45,092 Cr..

What is the current Stock Price of ABB India Ltd as on 30 December 2024?

The current stock price of ABB India Ltd as on 30 December 2024 is 6,847.

What is the High / Low of ABB India Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of ABB India Ltd stocks is 9,200/4,340.

What is the Stock P/E of ABB India Ltd?

The Stock P/E of ABB India Ltd is 86.0.

What is the Book Value of ABB India Ltd?

The Book Value of ABB India Ltd is 299.

What is the Dividend Yield of ABB India Ltd?

The Dividend Yield of ABB India Ltd is 0.35 %.

What is the ROCE of ABB India Ltd?

The ROCE of ABB India Ltd is 30.7 %.

What is the ROE of ABB India Ltd?

The ROE of ABB India Ltd is 22.9 %.

What is the Face Value of ABB India Ltd?

The Face Value of ABB India Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in ABB India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE