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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500002 | NSE: ABB

Fundamental Analysis of ABB India Ltd

About the Company - ABB India Ltd

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

Basic Stock Data of ABB India Ltd

Last Updated: April 9, 2024, 7:51 am

Market Cap 1,42,202 Cr.
Current Price 6,711
High / Low6,721/3,141
Stock P/E114
Book Value 281
Dividend Yield0.36 %
ROCE30.5 %
ROE22.9 %
Face Value 2.00
PEG Ratio3.50

Competitors of ABB India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Advance Metering Technology Ltd 77.1 Cr. 48.064.6/17.8 61.80.00 %0.96 %2.00 % 5.00
Surana Solar Ltd 189 Cr. 38.348.0/19.1 11.40.00 %1.44 %2.22 % 5.00
Godha Cabcon and Insulation Ltd 53.3 Cr. 0.801.60/0.45105 1.030.00 %3.12 %1.11 % 1.00
Amba Enterprises Ltd 206 Cr. 163184/60.833.4 28.20.19 %21.6 %18.8 % 5.00
Artemis Electricals & Projects Ltd 815 Cr. 32.572.4/12.565.2 3.080.00 %9.26 %8.93 % 1.00
Industry Average268.08 Cr56.5240.7221.100.04%7.28%6.61%3.40

ABB India Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,6121,7011,6291,4251,7782,1021,9682,0532,1202,4272,4112,5092,769
Expenses1,4961,6201,5061,3381,5971,9161,7801,8541,9092,0632,1262,1602,331
Operating Profit1178112387181185188199211364285349439
OPM %7%5%8%6%10%9%10%10%10%15%12%14%16%
Other Income20321003315101334198869727578
Interest3732241327211
Depreciation25302526292326252727272930
Profit before tax1097619492165260494189270400328393485
Tax %26%24%27%24%27%28%25%26%27%24%25%25%25%
Net Profit815814170120188373140198305245296363
EPS in Rs3.812.726.673.325.668.8817.616.629.3214.4111.5613.9517.12

ABB India Ltd Quarterly Chart

ABB India Ltd Profit & Loss

Last Updated: May 27, 2024, 4:53 am

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%

ABB India Ltd Profit & Loss Yearly Chart

Unable to calculate Year-wise YoY Net Profit Growth.

ABB India Ltd Growth

Compounded Sales Growth
10 Years:3%
5 Years:9%
3 Years:22%
TTM:23%
Compounded Profit Growth
10 Years:21%
5 Years:20%
3 Years:93%
TTM:69%
Stock Price CAGR
10 Years:26%
5 Years:45%
3 Years:79%
1 Year:116%
Return on Equity
10 Years:13%
5 Years:14%
3 Years:18%
Last Year:23%

Last Updated: April 9, 2024, 7:51 am

ABB India Ltd Balance Sheet

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Equity Capital424242424242424242424242
Reserves2,5562,6352,7702,9663,2443,5653,9653,4783,5644,0034,8975,902
Borrowings32862037160060060871458373349
Other Liabilities3,5443,7523,6393,8003,8444,6735,0634,1673,9263,9914,3465,008
Total Liabilities6,4707,0506,8227,4097,7318,8889,0777,7017,5908,0739,31811,001
Fixed Assets1,2071,3921,4001,2981,2551,219893742783817899994
CWIP11747324468116835975776960
Investments521716161627100004932
Other Assets5,0935,5945,3746,0506,3927,2828,1016,9006,7337,1797,8579,946
Total Assets6,4707,0506,8227,4097,7318,8889,0777,7017,5908,0739,31811,001

ABB India Ltd Reserves and Borrowings Chart

ABB India Ltd Cash Flow

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Cash from Operating Activity 118-50330479382863792625667318650742
Cash from Investing Activity -361-340-209-148-76-68-318151-398443-2,0081,826
Cash from Financing Activity -80211119-42242-179-171-794-147-152-127-140
Net Cash Flow-323-179240-91347615302-17123609-1,4852,428

ABB India Ltd Financial Efficiency Indicators

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Debtor Days15115815314915212516692971069989
Inventory Days6868736771671117968838398
Days Payable145140154146159154261160150169185182
Cash Conversion Cycle75857271643815111520-25
Working Capital Days395955535637-4-9713-3-4-3
ROCE %13%10%13%15%17%17%15%17%14%7%16%23%

ABB India Ltd Financial Efficiency Indicators Chart

ABB India Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs3.83%3.73%3.49%3.76%3.68%3.53%5.39%7.55%8.45%9.46%10.18%10.72%
DIIs7.26%7.06%6.96%8.03%8.22%8.59%11.89%9.73%8.98%8.07%7.37%6.92%
Public13.91%14.21%14.55%13.21%13.10%12.88%7.69%7.71%7.56%7.48%7.47%7.36%
No. of Shareholders76,22977,73678,99680,46483,18789,7391,05,20597,7571,06,3961,09,4351,12,3991,02,093

ABB India Ltd Shareholding Pattern Chart

No. of ABB India Ltd Shareholders

ABB India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Axis Midcap Fund8574801.6352.36
Canara Robeco Emerging Equities6754541.58277.56
Kotak Equity Opportunities Fund - Regular Plan6000001.62246.56
SBI Magnum Equity ESG Fund4000003.37164.37
Nippon India Large Cap Fund3750000.93154.1
Motilal Oswal Flexi Cap Fund3500001.77143.83
Canara Robeco Flexi Cap Fund2960001.21121.64
Canara Robeco Equity Hybrid Fund2957001.38121.51
Nippon India Multi Cap Fund2750000.54113.01
Canara Robeco Bluechip Equity Fund2725001.1111.98

ABB India Ltd ROCE Trend

ABB India Ltd EPS Trend

ABB India Ltd 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

ABB India Ltd Profitability Ratios (%)

ABB India Ltd Liquidity Ratios

ABB India Ltd Liquidity Ratios (%)

ABB India Ltd Interest Coverage Ratios (X)

ABB India Ltd Valuation Ratios

Fair Value

Fair Value: ₹7,362.19

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.

Undervalued: 9.70% compared to the current price ₹6711

Intrinsic Value: ₹9,759.17

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 45.42% compared to the current price ₹6711

Last 5 Year EPS CAGR: 32.56%

*Investments are subject to market risks

Strength and Weakness of ABB India Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 16.75, which is a positive sign.
  2. The company has higher reserves (3,628.75 cr) compared to borrowings (277.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (7.08 cr) and profit (376.00 cr) over the years.
  1. The stock has a low average ROCE of 14.75%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 39.08, which may not be favorable.

Should I Buy ABB India Ltd Share Now?

  • 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: 12.75%)
      • 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: 260.67%)
      • 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: 114 (Industry average Stock P/E: 55.04)
      • 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:

FAQ

What is the latest fair value of ABB India Ltd?

The latest fair value of ABB India Ltd is 7362.19.

What is the Market Cap of ABB India Ltd?

The Market Cap of ABB India Ltd is 1,42,202 Cr..

What is the current Stock Price of ABB India Ltd as on 17 April 2024?

The current stock price of ABB India Ltd as on 17 April 2024 is 6,711.

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

In FY 2024, the High / Low of ABB India Ltd stocks is ₹6,721/3,141.

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

The Stock P/E of ABB India Ltd is 114.

What is the Book Value of ABB India Ltd?

The Book Value of ABB India Ltd is 281.

What is the Dividend Yield of ABB India Ltd?

The Dividend Yield of ABB India Ltd is 0.36 %.

What is the ROCE of ABB India Ltd?

The ROCE of ABB India Ltd is 30.5 %.

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