Prabhudas Lilladher's research report on ABB India
ABB India (ABB) reported strong set of number with EBITDA margin expanding by 197bps YoY to 9.5% mainly led by 1) improved capacity utilization, 2) revenue mix, 3) operational efficiency and 4) cost optimization. Order inflow came in at Rs19.1bn driven by order win in new high growth sectors like renewables water, data centers, railways, metro and F&B and other traditional sectors such as steel, cement, energy and power distribution etc. OB stands strong at Rs47.7bn (0.7x TTM revenue) providing revenue visibility for next 2-3 quarter. Going forward ABB will continue to focus on order wins and execution across projects.
Assign ‘HOLD’ rating (earlier UR) on stock with revised TP of Rs1,832.