In the last month, ABB India’s stock has dropped by 14%. Technical analysts say the stock is in a short-term correction phase. The key support level to watch is around ₹7,500–7,459. On Thursday, the stock fell over 6%, opening at ₹8,185.05 on the BSE. Over the last four years, the stock has gained around 758%. However, UBS Securities India recently downgraded the stock from ‘Buy’ to ‘Neutral’, raising the target price to ₹9,100.
UBS Securities India suggests that ABB India’s valuation upside is limited after a strong performance. They expect the company to maintain a quarterly order intake between ₹40 billion and ₹48 billion, driven by mobility and process automation.
“We expect continued strong drivers in both conventional and new segments, such as mobility, data centers, renewables, and PLI-led segments. However, at 75 times the estimated 2026 EPS (above the historical average), the stock seems to be pricing in over 30% earnings growth. Therefore, we downgrade the stock to Neutral with a target price of ₹9,100,” UBS stated.
To upgrade the stock back to ‘Buy’, UBS would need to see two things: 1) ABB’s quarterly order run-rate above ₹38 billion from mobility or higher base order growth, leading to strong profit growth; 2) Strong margins in the electrification portfolio driving higher-than-expected margins.
UBS views ABB as a top choice for exposure to infrastructure and niche products in both conventional and new segments. They also see potential in CG Power’s export scale-up and SIEM’s energy business expansion.
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