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ABB India Stock Drops 14% in a Month – What’s Next?

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.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

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