ABB India Limited

Industrials — Specialty Industrial Machinery · NSE

₹6,801.00−₹15.00 (−0.22%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of ABB India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

ABB India Limited develops and sells products and system solutions to utilities, industries, channel partners, and original equipment manufacturers in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees3,859

Annual revenue₹13,065 Cr

How does it make money?

Turns over ₹13,065 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 3,859 employees supports ₹3.39 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.39 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.1% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.2%

What is the outlook?

23 analysts covering the stock expect revenue to grow about 19.5% and earnings to grow about 33.9% in the year to 2027. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.5%

Est. earnings growth+33.9%

Analysts23

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +54% while net margin moved +7% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+54%

Margin effect+7%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 92.6x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 91.8x
✗ P/B of 15.44x is a steep premium to book

Quality vs. Valuation

Company Quality

79/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

32/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

92.6x

4Y Median

91.8x

44 monthly readings · mean 92.5x · range 56.6x–144.9x

Sector Median

43.5x

median of 3 sector peers

🟡Currently trading close to its 4y median of 91.8x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 113% above the peer median of 43.5x.

vs. its own history

Fair

91.8x median over 44 months · +1%

vs. sector peers

Expensive

43.5x median of 3 peers · +113%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

59.5x

PEG

5.16

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 14.2% to 18.3% over 3 years.
Cash generation is improving
Free cash flow is up 71% over 3 years.
High return on capital employed
ROCE of 28.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 156% over 3 years, from ₹33 Cr to ₹85 Cr.
🔴High leverageFinancial
Debt/Equity of 1.55x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 14.2% to 18.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.55x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 113% above the peer median. That premium needs a reason that persists, or it closes.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.4% CAGR
Latest reported year was 12.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹980 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 28.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹1.44 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

92.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

15.44x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹73.41

Profitable

Profitable on a per-share basis

ROE

19.1%

Strong

Strong capital efficiency

ROCE

28.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.55x

High

High leverage

Revenue Growth (YoY)

12.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.0%

Modest

Slow profit growth

Dividend Yield

0.44%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1,082 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

64.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

7.9%

Average

Average asset productivity

Operating Margin

11.5%

Average

Average margins

Net Margin

21.3%

Good

Strong bottom-line conversion

Current Ratio

2.19

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

66%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6964.7 / 7270.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹8,498 Cr	₹10,367 Cr	₹12,088 Cr	₹13,065 Cr	+15.4%
EBITDA	₹1,208 Cr	₹1,798 Cr	₹2,664 Cr	₹2,397 Cr	+25.7%
EBITDA Margin	14.2%	17.3%	22.0%	18.3%	—
PAT (Net Profit)	₹1,016 Cr	₹1,242 Cr	₹1,872 Cr	₹1,668 Cr	+18.0%
EPS	₹47.96	₹58.61	₹88.32	₹78.73	+18.0%
ROE	20.6%	20.9%	26.5%	21.3%	—
ROCE	27.7%	27.9%	35.5%	28.5%	—
Total Debt	₹33 Cr	₹49 Cr	₹52 Cr	₹85 Cr	+36.9%
Free Cash Flow	₹574 Cr	₹1,168 Cr	₹1,118 Cr	₹980 Cr	+19.5%

🟢 Revenue has grown at 15.4% a year over 3 years.

🟢 EBITDA has grown at 25.7% a year over 3 years.

🟢 EBITDA Margin has risen from 14.2% to 18.3% over 3 years (+4.1 pts).

🟢 PAT (Net Profit) has grown at 18.0% a year over 3 years.

🟢 EPS has grown at 18.0% a year over 3 years.

🟡 ROE has held roughly flat at 21.3% over 3 years.

🟡 ROCE has held roughly flat at 28.5% over 3 years.

🔴 Total Debt has grown at 36.9% a year over 3 years.

🟢 Free Cash Flow has grown at 19.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹13,638 Cr

Total Liabilities

₹5,802 Cr

Cash & Equivalents

₹1,553 Cr

Operating Cash Flow

₹1,220 Cr

Capex

-₹240 Cr

Shareholding (proxy)

Institutional Holding

12.8%

Insider Holding

76.3%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹29.59

Ex-Dividend Date

07 Aug 2026

Analyst Consensus

Recommendations

6 Buy · 8 Hold · 13 Sell

Target Price (Mean)

₹7,035.33

+3.4% vs CMP

Target Range

₹5,400 – ₹8,835

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

3 positive2 mixed1 general

ABB India Shares Crash Over 12% In 5 Days Despite 275% Profit Jump; Brokerages Cautious After Q1 CY2026 Result

Goodreturns, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Is ABB India the Best Stock in Its Sector? A Look at the Numbers

Univest, 12 Oct

ABB India soars 10%, hits 52-week high on strong earnings by parent company

Business Standard, 16 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

ABB India Shares Surge 10% To Record High as India Order Growth Sparks Rally

HDFC Sky, 16 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Why You Might Be Interested In ABB India Limited (NSE:ABB) For Its Upcoming Dividend

Simply Wall Street, 04 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

ABB India shares rally 10% to hit 52-week high on strong 81% order inflow growth; what investors need to know

Upstox, 16 JulOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Risk

MiddlingFinancial Health

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑