Hold ABB; target Rs 573: Firstcall Research

Firstcall Research's report on ABB

"ABB’s net profit decreased to Rs.425.60 million against Rs.476.40 million in the corresponding quarter of previous year, a decrease of 10.66%. Revenue for the quarter increases 10.04% to Rs.19700.20 million from Rs.17903.10 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.2.01 a share during the quarter, decrease of 10.66% over previous year period. Profit before interest, depreciation and tax is Rs.1079.20 millions as against Rs.993.80 millions in the corresponding period of the previous year."

"At the current market price of Rs.523.00, the stock P/E ratio is at 84.37 x CY13E and 88.66 x CY14E respectively. Earning per share (EPS) of the company for the earnings for CY13E and CY14E is seen at Rs.6.20 and Rs.5.90 respectively. Net Sales of the company is expected to grow at a CAGR of 4% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 31.31 x for CY13E and 29.85 x for CY14E. Price to Book Value of the stock is expected to be at 4.06 x and 3.88 x respectively for CY13E and CY14E. We recommend hold in this particular scrip with a target price of Rs 573 for Medium to Long term investment," says Firstcall Research report.

Also read: ABB: Outcome of board meeting

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