Buy ABB India; target of Rs 7500: Motilal Oswal

Motilal Oswal's research report on ABB India

ABB, in its annual report, highlighted its growth strategy to continue targeting high growth profitable markets that benefit from key megatrends. The company’s improved penetration into Tier II and Tier III cities, higher localization efforts, benefits from global feeder factories for exports, and improved product portfolio are helping it expand its presence across markets spanning 23 market segments. The company has been able to double its share of orders from high-growth segments in the last five years. ABB has been one of our top picks in the sector and has consistently outperformed on earnings. While the stock is expensive on valuations, it has one of the best RoIC in the capital goods sector. We remain positive on the company and maintain our BUY rating on the stock.

Outlook

We incorporate AR2023 details and revise our TP. We remain positive on the company and maintain our BUY rating with a two-year forward price target of INR7,500.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

ABB India - 09042024 - moti