Update shared on 25 Nov 2025
Fair value Decreased 3.20%Analysts have lowered their price target for ABB India from ₹5,438 to ₹5,263, reflecting cautious adjustments based on updated assumptions for profit margin and forward valuation metrics.
What's in the News
- ABB India expanded local production with a new line for energy-efficient drives at its Peenya factory in Bengaluru, increasing variable speed drives production capacity by around 25%.
- The new production line incorporates advanced robotics and digital monitoring. This boosts productivity, safety, and quality, and reduces lead times by up to 40% for made-to-order drives.
- ABB India committed over 1.4 billion to enhance and modernize its Low Voltage motors manufacturing capacity. This is accompanied by the launch of India's first IE5 ultra-premium efficiency motor range.
- The IE5 motors feature up to 40% lower energy losses compared to earlier models and are designed for reliability and performance across various industries.
- A Board Meeting is scheduled for November 6, 2025 to consider un-audited financial results for the quarter ending September 30, 2025.
Valuation Changes
- Fair Value Estimate decreased from ₹5,438 to ₹5,263, reflecting a downward revision in overall assessment.
- Discount Rate declined slightly from 16.24% to 16.04%.
- Revenue Growth expectations are largely unchanged, moving marginally from 7.30% to 7.29%.
- Net Profit Margin reduced significantly from 15.17% to 12.09%.
- Future P/E Ratio increased meaningfully from 73.92x to 89.29x. This indicates higher valuation expectations relative to earnings.
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