NSEI:ABB

Stock Analysis Report

Executive Summary

ABB India Limited offers industrial technology products and system solutions to utilities, industries, channel partners, and original equipment manufacturers worldwide.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


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


Market Performance


7 Day Return

2.1%

ABB

-0.5%

IN Electrical

1.6%

IN Market


1 Year Return

15.4%

ABB

-26.9%

IN Electrical

0.8%

IN Market

Return vs Industry: ABB exceeded the Indian Electrical industry which returned -26.9% over the past year.

Return vs Market: ABB exceeded the Indian Market which returned 0.8% over the past year.


Shareholder returns

ABBIndustryMarket
7 Day2.1%-0.5%1.6%
30 Day11.0%-3.7%1.5%
90 Day0.5%-12.3%-3.3%
1 Year15.7%15.4%-24.7%-26.9%2.7%0.8%
3 Year32.3%31.0%-4.9%-8.0%22.0%16.0%
5 Year43.4%41.2%-5.5%-10.5%42.3%29.3%

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?

152.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ABB (₹1496.7) is trading above our estimate of fair value (₹322.36)

Significantly Undervalued: 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 (152.3x) compared to the Electrical industry average (12.8x).

PE vs Market: ABB is poor value based on its PE Ratio (152.3x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: ABB is poor value based on its PEG Ratio (9.2x)


Price to Book Ratio

PB vs Industry: ABB is overvalued based on its PB Ratio (7.7x) compared to the IN Electrical industry average (0.8x).


Next Steps

Future Growth

How is ABB India forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABB's forecast earnings growth (16.5% per year) is above the savings rate (7.6%).

Earnings vs Market: ABB's earnings (16.5% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: ABB's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABB's revenue (15% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: ABB's revenue (15% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ABB's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has ABB India performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ABB's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: ABB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ABB had negative earnings growth (-54.7%) over the past year, making it difficult to compare to the Electrical industry average (16.8%).


Return on Equity

High ROE: ABB's Return on Equity (5%) is considered low.


Return on Assets

ROA vs Industry: ABB's Return on Assets is below or equal to the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: ABB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is ABB India's financial position?


Financial Position Analysis

Short Term Liabilities: ABB's short term assets (₹79.2B) exceeds its short term liabilities (₹50.3B)

Long Term Liabilities: ABB's short term assets (79.2B) exceeds its long term liabilities (356.0M)


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 29.1%.

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

Inventory Level: ABB has a low level of unsold assets or inventory.

Debt Coverage by Assets: ABB's debt is not covered by short term assets (assets are -1619.3x debt).


Next Steps

Dividend

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

0.32%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.5%industryaverage2.7%forecastin3Years0.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ABB's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: ABB's dividend (0.32%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

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 (48.9%), ABB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABB's dividends in 3 years are forecast to be well covered by earnings (24.4% payout ratio).


Next Steps

Management

What is the CEO of ABB India's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Sanjeev Sharma (54yo)

3.8yrs

Tenure

₹60,570,000

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 ($USD850.14K) is about average for companies of similar size in the Indian market ($USD828.95K).

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


Management Age and Tenure

3.8yrs

Average Tenure

Experienced Management: ABB's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

61yo

Average Age

Experienced Board: ABB's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹16,377,671,19002 Nov 18
ABB Ltd
EntityCompany
Shares12,540,330
Max Price₹1,306.00
Sell₹16,377,671,19002 Nov 18
ABB Ltd
EntityCompany
Shares12,540,330
Max Price₹1,306.00

Ownership Breakdown


Management Team

  • B. Gururaj (65yo)

    General Counsel

    • Tenure: 0yrs
    • Compensation: ₹11.23m
  • Nuguri Venu

    Head of Power Grids Division - South Asia

    • Tenure: 3.8yrs
  • Madhav Vemuri

    President of Industrial Automation & Country Service Manager

    • Tenure: 0yrs
  • G. Subba Rao

    Head of India Centre for Global R&D

    • Tenure: 0yrs
  • T. Sridhar

    CFO & Chief Investor Relations Officer

    • Tenure: 4.3yrs
    • Compensation: ₹14.86m
  • Sanjeev Sharma (54yo)

    MD & Director

    • Tenure: 3.8yrs
    • Compensation: ₹60.57m
  • Karthik Krishnamurthi

    Head of Country Sales & Marketing

    • Tenure: 0yrs
  • Peter Stierli

    Head of Communications

    • Tenure: 0yrs
  • Akilur Rahman

    Chief Technology Officer

    • Tenure: 0yrs
  • Raman Singh

    Head of Human Resources

    • Tenure: 0yrs

Board Members

  • Renu Karnad (66yo)

    Non-Executive Independent Director

    • Tenure: 6.2yrs
    • Compensation: ₹2.64m
  • Nasser Munjee (67yo)

    Non-Executive & Independent Director

    • Tenure: 17.7yrs
    • Compensation: ₹4.14m
  • Darius Udwadia (80yo)

    Non Executive & Independent Director

    • Tenure: 14.3yrs
    • Compensation: ₹3.34m
  • Jean-Christophe Deslarzes (56yo)

    Chairman

    • Tenure: 1.7yrs
  • Tarak Mehta (53yo)

    Non-Executive Director

    • Tenure: 5yrs
  • Sanjeev Sharma (54yo)

    MD & Director

    • Tenure: 3.8yrs
    • Compensation: ₹60.57m

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: ₹312.279b
  • Shares outstanding: 211.91m
  • Website: https://www.abb.co.in

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 industrial technology products and system solutions to utilities, industries, channel partners, and original equipment manufacturers worldwide. The company operates through Robotic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:45
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.