Reduce ABB India; target of Rs 5875: Emkay Global Financial

Reduce

Emkay Global Financial' research report on ABB India

ABB India has announced a capex plan of ~USD75mn for CY26 which is aimed at expanding its manufacturing capacity and R&D capabilities for electrification and automation solutions. This is in addition to the USD35mn spent during CY25. The investment is expected to be deployed toward capacity expansion, modernization of existing facilities, and development of advanced manufacturing technologies, which will enable the company to cater to the rising demand from sectors such as energy transition, data centers, transportation, and industrial automation. The management has indicated that the strong demand is driven by the country’s energy transition, grid modernization, data-center development, and rapid expansion of the metro and high-speed rail segments.

Outlook

We introduce estimates for CY28 and roll forward the TP to Mar-28E. We maintain REDUCE on the stock while nudging up our TP by ~5% to Rs5,875 from Rs5,600 (55x Mar-28E EPS), on premium valuations.

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ABB India - 1103026 - emkay