ABB India Q4 Results Review: Motilal Oswal Maintains 'Buy' On The Stock, Sees 30% Upside — Here's Why

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Motilal Oswal Report

ABB India Ltd.’s Q4 CY24 results were ahead of our estimates on revenue/Ebitda/PAT. The company reported 22%/52%/54% YoY growth in revenue/Ebitda/PAT. This was driven by seamless execution and continued strength in margins across segments.

Order inflows were down 14% YoY due to the transient impact of slow government and private capex. We expect ABB to be relatively better placed than peers, as-

1. ABB has more than 50% exposure to high- and moderate-growth segments,

2. the company has better control over margins on cost efficiencies even if gross margin come off from current levels in future, and

3. it has the ability to gain more on exports as it is being preferred by group companies for exports.

We cut our estimates by 6%/9% for FY25/26 to bake in slightly lower order inflows across segments due to slower government capex (35-40% indirect exposure) and slower than expected private capex growth.

ABB is currently trading at 53x/47x on CY25E/CY26E earnings. We remain positive on the company and maintain Buy with a revised target price of Rs 6,700, which implies 60x Mar’27E earnings.

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