NSEI:ABB

Stock Analysis Report

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Executive Summary

ABB India Limited offers automation and power technology products and system solutions to utilities, industries, channel partners, and original equipment manufacturers in India and internationally.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has ABB India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

ABB

1.0%

IN Electrical

-0.3%

IN Market


1 Year Return

-35.3%

ABB

-19.0%

IN Electrical

2.0%

IN Market

Return vs Industry: ABB underperformed the Indian Electrical industry which returned -19% over the past year.

Return vs Market: ABB underperformed the Indian Market which returned 2% over the past year.


Shareholder returns

ABBIndustryMarket
7 Day2.2%1.0%-0.3%
30 Day-8.5%-2.7%3.8%
90 Day4.8%15.4%19.7%
1 Year-28.3%-35.3%-16.6%-19.0%3.9%2.0%
3 Year-27.6%-35.1%-25.5%-29.1%-0.6%-5.3%
5 Year-24.0%-32.2%-30.0%-34.3%27.0%17.4%

Price Volatility Vs. Market

How volatile is ABB India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ABB India undervalued compared to its fair value and its price relative to the market?

84.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABB (₹900.1) is trading above our estimate of fair value (₹34.78)

Significantly Below Fair Value: ABB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABB is poor value based on its PE Ratio (84.8x) compared to the IN Electrical industry average (13x).

PE vs Market: ABB is poor value based on its PE Ratio (84.8x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ABB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ABB is overvalued based on its PB Ratio (5.3x) compared to the IN Electrical industry average (0.7x).


Next Steps

Future Growth

How is ABB India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.4%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ABB India has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has ABB India performed over the past 5 years?

-3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABB has high quality earnings.

Growing Profit Margin: ABB's current net profit margins (3.6%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: ABB's earnings have declined by 3.2% per year over the past 5 years.

Accelerating Growth: ABB's earnings growth over the past year (8.8%) exceeds its 5-year average (-3.2% per year).

Earnings vs Industry: ABB earnings growth over the past year (8.8%) exceeded the Electrical industry -9.4%.


Return on Equity

High ROE: ABB's Return on Equity (6.3%) is considered low.


Next Steps

Financial Health

How is ABB India's financial position?


Financial Position Analysis

Short Term Liabilities: ABB's short term assets (₹59.0B) exceed its short term liabilities (₹37.6B).

Long Term Liabilities: ABB's short term assets (₹59.0B) exceed its long term liabilities (₹144.4M).


Debt to Equity History and Analysis

Debt Level: ABB is debt free.

Reducing Debt: ABB has no debt compared to 5 years ago when its debt to equity ratio was 23%.

Debt Coverage: ABB has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ABB has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is ABB India current dividend yield, its reliability and sustainability?

0.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABB's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.65%).

High Dividend: ABB's dividend (0.53%) is low compared to the top 25% of dividend payers in the Indian market (2.72%).


Stability and Growth of Payments

Stable Dividend: ABB's dividends per share have been stable in the past 10 years.

Growing Dividend: ABB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), ABB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Sanjeev Sharma (55 yo)

4.58yrs

Tenure

₹72,227,000

Compensation

Mr. Sanjeev Sharma has been Managing Director and Director of ABB India Limited since January 1, 2016. Mr. Sharma served as Global Managing Director for The Low Voltage Systems Business Unit at ABB India L ...


CEO Compensation Analysis

Compensation vs Market: Sanjeev's total compensation ($USD962.69K) is about average for companies of similar size in the Indian market ($USD751.02K).

Compensation vs Earnings: Sanjeev's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sanjeev Sharma
MD & Director4.58yrs₹72.23mno data
T. Sridhar
CFO & Chief Investor Relations Officer5.08yrs₹17.15mno data
B. Gururaj
General Counselno data₹12.47mno data
Akilur Rahman
Chief Technology Officerno datano datano data
Peter Stierli
Head of Communicationsno datano datano data
Karthik Krishnamurthi
Head of Country Sales & Marketingno datano datano data
Raman Singh
Head of Human Resourcesno datano datano data
Nuguri Venu
Head of Power Grids Division - South Asia4.58yrsno datano data
Madhav Vemuri
President of Industrial Automation & Country Service Managerno datano datano data
G. N. Subba Rao
Head of India Centre for Global R&Dno datano datano data
C. Vyas
President of Electrification Productsno datano datano data
Vipin Upadhyay
BR Head & Country Sustainability Managerno datano datano data

4.6yrs

Average Tenure

Experienced Management: ABB's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sanjeev Sharma
MD & Director4.58yrs₹72.23mno data
Renu Karnad
Non-Executive Independent Director7yrs₹2.90mno data
Nasser Munjee
Non-Executive & Independent Director18.5yrs₹3.96mno data
Darius Udwadia
Non Executive & Independent Director15.08yrs₹3.46m0.0016%
₹ 3.2m
Vegulaparanan Viswanathan
Additional Non-Executive & Independent Director0.75yr₹80.00kno data
Jean-Christophe Deslarzes
Chairman2.5yrsno datano data
Diane de Saint Victor
Additional Non-Executive & Non-Independent Director0.75yrno datano data
Morten Wierod
Non-Executive & Non-Independent Director0.17yrno datano data

3.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: ABB's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ABB India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ABB India Limited
  • Ticker: ABB
  • Exchange: NSEI
  • Founded: 1949
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: ₹191.904b
  • Shares outstanding: 211.91m
  • Website: https://new.abb.com/indian-subcontinent

Number of Employees


Location

  • ABB India Limited
  • World Trade Center
  • 21st Floor
  • Bengaluru
  • Karnataka
  • 560055
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500002BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1992
ABBNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1992

Biography

ABB India Limited offers automation and power technology products and system solutions to utilities, industries, channel partners, and original equipment manufacturers in India and internationally. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 12:38
End of Day Share Price2020/08/05 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.