ABB Power Q3 CY21 Review - Rich Valuations Limit Upside: Dolat Capital

"BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.ABB Power Products and Systems India Ltd. reported revenue decline of 9% YoY (-14% vs DART est.) primarily due to execution loss of Rs 640 million on account of supply chain constraints, especially from trade logjams, port delays and equipment shortages.Despite inflationary cost pressure, APPSIL’s gross margin improved by 344 bps YoY, largely due to improved product mix in favor of exports and services. GM’s uptick is expected to continue further as management is aiming for higher growth from services business.Order inflows came in strong at ~Rs 10 billion (highest in last seven quarters), up by 31% QoQ/ 10% YoY, despite Rs 730 million of L1 orders being deferred by customers.We believe APPSIL’s long term structural growth story remains intact and expect earnings CAGR of 41% over CY20-CY23E led by high growth segments (Mobility, Renewables & Data Centers), better sales mix and cost rationalisation..Click on the attachment to read the full report:.DISCLAIMER This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

ABB Power Q3 CY21 Review - Rich Valuations Limit Upside: Dolat Capital