In a recent report, two prominent brokerage firms, UBS and Jefferies, recommend buying ABB India shares, with a maximum target price of Rs 7,550 per share. Growth in every sector contributed to the company’s strong fourth quarter. With a 35% YoY increase in order inflows, ABB India’s backlog remained robust at Rs 84 billion. Recently, ABB India’s shareholders proposed a final dividend. The market valuation of the firm stood at Rs 1,41,823.92 crore, according to BSE.
Stock Performance
On Apr 09, 2024, the shares of ABB India last lasted at Rs 6,527.55 apiece on the BSE, Rs 169.50 or 22.53% down from the previous close of Rs Rs 6,697.05 apiece. Its 52-week high price on the BSE is Rs 6,746.85 apiece and its 52-week low price is Rs 2,143.20 apiece on the BSE.
The shares of ABB India surged 13.15% in the past 1 month, while in the past 3 months it jumped 32.71%. It has given 92.22% robust return in the past 1 year, 373.04% in the past 3 years, and 363.65% in the past 5 years, respectively. .
Buy – Brokerages’ Recommend
Brokerage firm UBS has assigned a ‘buy’ rating to ABB India shares with a revised target price of Rs 7,550 per share. According to the analysts, the key factors behind the revised target price are, “best quality electrification and mobility growth, electrification and motion to drive growth and margins, more upside to consensus on margins despite recent upgrades, and earnings acceleration sustainable, plenty of growth levers at play.” Leading brokerage firm, Jefferies has also come up with a ‘buy’ recommendation on ABB India shares with an upgraded target price to Rs 6,250, which was previously Rs 6,115, backed by the robust financial performance.
Q4 Results: ABB India follows January to December as its financial year. The company announced its total revenue surged to Rs 2,757 crore for Q4 ended December 31, 2023, as against Rs 2427 crore in the similar quarter a year ago. ABB declared its total orders surged by 35% to Rs 3,147 crore in Q4. Meanwhile, in 2023, it bagged orders worth Rs 12,319 crore, up 23% over 2022. For the entire fiscal, ABB’s PAT stood at Rs 1,248 crore, up over Rs 1,026 crore from last financial year and revenues rallied to Rs 10,447 crore, from Rs 8,568 crore a year ago.
Dividend
On Feb 20, 2024, the Board of ABB India recommended a final dividend of Rs 23.80 per share of the face value of Rs 2/- each for the financial year ended December 31, 2023. The record date for the final dividend is May 4, 2024.
According to the regulatory filing by the Board of Directors of ABB India Ltd. on Feb 20, 2024, “recommendation of final dividend of Rs.23.80 per share (Rupees Twenty Three and Eighty paisa only), i.e., (1190%) on 21,19,08,375 Equity Shares of face value of Rs.2/- each fully paid up for the financial year ended December 31, 2023.”
Since May 17, 2001, the Board of ABB India has announced total 25 dividends, which includes 24 Final and 1 special dividend. In the past 1-year, ABB India announced an equity dividend of Rs 11.00 per share, both final and special dividend. At the current share price of Rs 6697.05, ABB India offers a dividend yield of 0.17%.
About: ABB India Ltd. is a leading technology company focused on electrification and automation, enabling a more sustainable and resource-efficient future. According to the company’s official website, its solutions combine engineering expertise and software to improve how objects are created, moved, powered, and operated.
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