ABB India Q2 Review – Rich Valuation Leaves Little Upside: Dolat Capital

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ABB India Ltd.’s Q2 CY21 Ebitda miss (14%/21% versus our/consensus estimate) was primarily on the account of,

1. delays in manufacturing clearances which led to lower than expected sales in process automation business and

2. Ebit margin contraction of ~500 basis points QoQ in electrification business due to hardening of commodity prices.

Despite headwinds caused by pandemic, Motion business sustained strong momentum with ordering growth of up 92%/up 15% YoY/QoQ, which led to total order inflow growth of 41% YoY.

Order backlog stood at Rs 46 billion, 0.7 times trailing twelve months sales.

Data centers, food and beverage, pharma and electronics manufacturing are high growth areas for ABB India.

Click on the attachment to read the full report:

Dolat Capital ABB India Q2CY21 Result Update.pdf


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