ABB India is listed on the Indian Stock Exchange NSE under the symbol “ABB” and on the BSE with the code “500002“. let’s analyze the future of ABB India Share Price Target 2024 to 2030 as well, including whether it’s a good time to buy or sell them today. Additionally, we will also take into Analyst Recommendations for ABB India Share Price Target.
About ABB India
| Name | ABB India Ltd |
| Industry | Electrification, Automation |
| Founded | 1883 |
| Services | Electrification, Robotics, Automation, Motion |
| Products | Electrical Components, Systems |
| Country | India |
| Website | ABB India |
| Profile | ABB |
Brokerage Firms
Broker research consists of reports from brokerage firms or investment banks, offering insights and recommendations on ABB India, including whether to buy, sell, or hold, along with ABB India Share Price Target and forecasts.
| DATE | AUTHOR | TARGET | TYPE |
|---|---|---|---|
| 18 APR 2024 | ICICI Securities Limited | 5330.00 | Sell |
| 08 APR 2024 | Aditya Birla Money Limited | 7500.00 | Buy |
| 22 FEB 2024 | BOB Capital Markets Ltd. | 5000.00 | Hold |
| 21 FEB 2024 | Prabhudas Lilladhar | 5329.00 | Accum. |
| 21 FEB 2024 | BOB Capital Markets Ltd. | 5000.00 | Hold |
The financial services firm ICICI Securities Limited published the latest research report on ABB India Share Price Target, recommend a ‘Sell’ rating with a share price target of Rs.5,330 from its current market price of Rs.6,645.
Robust Order Inflow in H2CY23: ABB recorded a strong order inflow of INR 61 billion in the second half of CY23, marking a 24% year-over-year increase, primarily driven by long lead items.
Increase in Long Lead Orders: The proportion of long lead orders significantly rose to 15% by the end of CY23, up from 7% in CY22.
Total Orders for CY23: Throughout CY23, ABB’s total order inflow stood at INR 123 billion compared to INR 100 billion in the previous year, with the order book growing by 29% to INR 83.4 billion.
Forecast for Near-Term Order Inflow: Due to the upcoming general elections (Apr-Jun’24), there is uncertainty that could lead to subdued order inflow in the first half of CY24, potentially affecting revenue growth for the entire year.
Marginal Growth Adjusted for Long Lead Orders: When adjusted for the increase in long lead orders, the real growth rate for CY24 is projected at 8% year-over-year.
Peak Margins Anticipated: Operating margins may have peaked with most benefits from easing raw material costs already realized, suggesting limited scope for further margin improvements.
Significant Stock Price Increase: Over the past two months, ABB’s stock price has surged by 45%, now trading at a premium, approximately 81 times the forecasted CY25 earnings per share (EPS) of INR 82.
Historical P/E Comparison: The current price-to-earnings ratio significantly exceeds the historical average of 60 times the 2-year forward earnings.
Valuation and Stock Downgrade: Due to the sharp increase in stock price and valuation concerns, ABB has been downgraded from ADD to SELL, with a target price of INR 5,330 per share, reflecting a valuation of 65 times CY25E EPS.
Current Market Price and Target: ABB’s current market price is INR 6,645, with the target price set at INR 5,330, indicating a potential downside of around 20%.
Financial of ABB India
Long-Term Prediction
We will conduct a detailed analysis of the company’s recent stock performance and offer you thoroughly researched ABB India Share Price Target 2024, 2025, 2027 to 2030. Our projections are based on extensive research and forecasted data from past performance.
ABB India’s share price target for 2024 has been set with a minimum of ₹5,330 and a maximum of ₹6,645. Here’s a concise explanation of these targets:
Maximum Target (₹6,645)
Current Market Price: The maximum target is close to the current market price (CMP) of ₹6,645, suggesting a scenario where the stock maintains its present valuation throughout the year. This assumption is underpinned by the stock’s recent sharp rise of 45% in the past two months, demonstrating robust market confidence.
Earnings Stability: The earnings per share (EPS) for 2024 are estimated at ₹64.7, reflecting a modest growth from the current year. This steady, though not spectacular, EPS growth supports a stable price outlook.
Revenue and Profit Estimates: There is an anticipated revenue of ₹121.61 billion and a net profit of ₹13.72 billion for 2024. These figures suggest growth but at a tempered pace, impacted by external economic factors and market dynamics.
Minimum Target (₹5,330):
P/E Contraction: This target implies a contraction in the price-to-earnings (P/E) ratio to 65 times the estimated 2024 EPS of ₹82. This is a downward adjustment from the currently inflated P/E of 81 times, aligning the valuation more closely with historical averages due to anticipated market corrections.
Economic and Market Uncertainties: Factors like upcoming general elections and potential volatility in raw material costs are expected to influence market sentiments negatively, justifying a lower P/E ratio and hence a reduced share price target.
For ABB India, the share price targets for 2025 have been thoughtfully set at a minimum of ₹5,500 and a maximum of ₹7,000, reflecting the evolving market conditions and the company’s operational performance. Here’s a succinct breakdown:
Maximum Target (₹7,000):
Earnings Growth: The optimistic target of ₹7,000 takes into account an expected improvement in earnings, with the EPS forecasted at ₹81.8 for 2025. This represents a substantial 26.4% growth year-over-year, signaling strong financial health and profit generation capabilities.
Market Sentiment and Expansion: This target is also supported by ABB India’s strategic focus on expanding its footprint in the automation and digitalization sectors, areas that are likely to see increased investment and growth, thus boosting investor confidence.
Revenue and EBITDA: For 2025, revenue is projected at ₹151.76 billion, with an EBITDA of ₹21.21 billion, indicating healthy operational efficiency and a steady margin improvement to 14%.
Minimum Target (₹5,500):
Economic Adjustments: The minimum target reflects a conservative scenario where market conditions may not be as favorable, possibly due to macroeconomic factors or less than expected industrial growth. It suggests a P/E ratio adjustment that aligns the company’s valuation more closely with conservative market expectations.
Market Volatility: Given the inherent uncertainties in the market, including potential regulatory changes or competitive pressures, the lower target accounts for these risks impacting the stock’s performance.
For ABB India, the projected share price targets for the year 2030 are set at a minimum of ₹7,000 and a maximum of ₹9,000. This forecast takes into account both the company’s potential for growth and broader market conditions. Here’s a clear and concise explanation:
Maximum Target (₹9,000):
Continued Growth: The upper target of ₹9,000 is based on optimistic expectations of ABB India’s continued expansion and dominance in the fields of automation and digitalization. As the company capitalizes on increasing demand in these sectors, its financial performance is expected to improve significantly, thereby justifying a higher valuation.
Technological Advancements and Market Leadership: Assuming ABB India remains at the forefront of technological advancements and maintains its market leadership, investor confidence would likely increase, driving the stock price towards this upper limit.
Minimum Target (₹7,000):
Conservative Market Conditions: The minimum target accounts for possible economic downturns or slower-than-expected growth in the company’s key markets. This figure reflects a more conservative approach to valuation, considering potential risks and uncertainties that might affect the market.
Operational Challenges: Factors such as increased competition, regulatory changes, or operational inefficiencies might hinder expected growth rates, contributing to a more cautious investment outlook.
| Year | Minimum Target (₹) | Maximum Target (₹) | Expected Change (%) |
|---|---|---|---|
| 2024 | 5,330 | 6,645 | -20% to 0% |
| 2025 | 5,500 | 7,000 | -17% to +5% |
| 2026 | 5,800 | 7,400 | -13% to +11% |
| 2027 | 6,100 | 7,800 | -8% to +17% |
| 2028 | 6,400 | 8,200 | -4% to +23% |
| 2029 | 6,700 | 8,600 | 0% to +29% |
| 2030 | 7,000 | 9,000 | +5% to +35% |
| 2035 | 8,500 | 11,000 | +28% to +66% |
| 2040 | 10,000 | 13,000 | +51% to +97% |
| 2045 | 11,500 | 15,000 | +73% to +127% |
| 2050 | 13,000 | 17,000 | +96% to +156% |
Analyst Recommendations
ABB India Buy or Sell
Daily Low / High
Peer Comparison of ABB India
| Name | P/E | ROCE % |
|---|---|---|
| Siemens | 102.98 | 20.66 |
| ABB | 106.94 | 30.69 |
| BHEL | – | 3.33 |
| CG Power & Indu. | 95.04 | 61.65 |
| Suzlon Energy | 109.58 | 20.78 |
| Hitachi Energy | 345.85 | 12.91 |
| Apar Inds. | 34.02 | 51.14 |
– The latest research report from ICICI Securities Limited sets a ABB India Share Price Target of Rs. 5330.
– Based on our analysis, the maximum ABB India Share Price Target in 2035 is projected to be ₹11,000.
– Based on our analysis, the maximum ABB India Share Price Target in 2040 is projected to be ₹13,000.
– Based on our analysis, the maximum ABB India Share Price Target in 2050 is projected to be ₹17,000.
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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, predicting share prices is not an exact science, which is why I am conducting in-depth research and utilizing various tools to forecast share prices.
Disclaimer– These Share Price Targets for “ABB India Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold ABB India stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com
