Check Before You Invest : ABB India Ltd

Q: Which industry/sub-sector does ABB India Ltd belong to?

ABB India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q: Is ABB India Ltd a good quality company?

ABB India Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is ABB India Ltd undervalued or overvalued?

ABB India Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 98.71, Historic Median: 83.46. Price to Book, Current: 18.55, Historic Median: 15.81. Price to Sales, Current: 11.59, Historic Median: 9.17. EV to EBITDA, Current: 65.46, Historic Median: 60.87

Q: Is ABB India Ltd a good buy now?

ABB India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of ABB India Ltd?

ABB India Ltd revenue growth is 8.3% for FY-2025, which is below its 5-year CAGR of 17.8%, indicating slower growth.

Q: Gross Profit margin of ABB India Ltd?

ABB India Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.9% for FY-2025, which is above its 5-year median of 16.9%, indicating increasing margins.

Q: Operating Profit Margin of ABB India Ltd?

ABB India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.24% for FY-2025, which is in line with its 5-year median of 14.84% indicating stable margins.

Q: Net Profit Margin of ABB India Ltd?

ABB India Ltd Net Profit Margin is 12.64% for FY-2025, is above its 5-year median of 11.97%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 17.9, Historic Median: 16.9. Operating Profit Margin (%), Current: 15.24, Historic Median: 14.84. Net Profit Margin (%), Current: 12.64, Historic Median: 11.97

Q: Return on Asset of ABB India Ltd?

ABB India Ltd Return on Asset is 12.9%, which is in line with its 5-year historical median of 12.4%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of ABB India Ltd?

ABB India Ltd Return on capital employed is 30.18% for FY-2025, which is in line with its 5-year historical median of 30.68%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : ABB India Ltd

Snapshot

Q.1 Which industry/sub-sector does ABB India Ltd belong to?

ABB India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is ABB India Ltd a good quality company?

ABB India Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is ABB India Ltd undervalued or overvalued?

ABB India Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	98.71	83.46
Price to Book	18.55	15.81
Price to Sales	11.59	9.17
EV to EBITDA	65.46	60.87

Q.4 Is ABB India Ltd a good buy now?

ABB India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of ABB India Ltd?

ABB India Ltd revenue growth is 8.3% for FY-2025, which is below its 5-year CAGR of 17.8%, indicating slower growth.

Q.2 Gross Profit margin of ABB India Ltd?

ABB India Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.9% for FY-2025, which is above its 5-year median of 16.9%, indicating increasing margins.

Q.3 Operating Profit Margin of ABB India Ltd?

ABB India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.24% for FY-2025, which is in line with its 5-year median of 14.84% indicating stable margins.

Q.4 Net Profit Margin of ABB India Ltd?

ABB India Ltd Net Profit Margin is 12.64% for FY-2025, is above its 5-year median of 11.97%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	17.9	16.9
Operating Profit Margin (%)	15.24	14.84
Net Profit Margin (%)	12.64	11.97

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of ABB India Ltd?

ABB India Ltd Return on Asset is 12.9%, which is in line with its 5-year historical median of 12.4%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of ABB India Ltd?

ABB India Ltd Return on capital employed is 30.18% for FY-2025, which is in line with its 5-year historical median of 30.68%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of ABB India Ltd?

ABB India Ltd Return on equity is 22.39% for FY-2025, which is in line with its 5-year historical median of 22.83%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of ABB India Ltd?

ABB India Ltd Cash conversion cycle is 16 days, above its 5-year historical median of 15 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.03	1.03
ROE (%)	22.39	22.83
ROCE (%)	30.18	30.68
Cash Conversion Cycle	16 days	15 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of ABB India Ltd?

ABB India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of ABB India Ltd?

ABB India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of ABB India Ltd?

Q.1 Promoter shareholding and pledge status of ABB India Ltd?

Promoters hold 75.00% of the ABB India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does ABB India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ABB India Ltd vs industry peers?

ABB India Ltd revenue CAGR is 17.80%, compared to the industry median CAGR of 14.16%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	8.3	14.2
Gross Profit Growth (%)	-10.1	30
Operating Profit Growth (%)	-12.5	49.9
Net Profit Growth (%)	-11	33.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.03	1.03
ROE (%)	22.39	22.83
ROCE (%)	30.18	30.68
Cash Conversion Cycle (days)	16.06	23

Valuation & price assessment

Q.1 Stock return of ABB India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 19.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	19.4%	34.1%	21.1%	18.7%

Q.2 Valuation ratios of ABB India Ltd vs historical?

The current P/E ratio of 98.71 is higher than its historical median of 83.46, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	98.71	83.46	38.08
Price to Book	18.55	15.81	3.97
Price to Sales	11.59	9.17	2.75
EV to EBITDA	65.46	60.87	18.75

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Check Before You Invest : ABB India Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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