Buy ABB India, target price Rs 1565: Motilal Oswal

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Buy ABB India, target price Rs 1565:  Motilal Oswal


Motilal Oswal has buy call on India with a target price of Rs 1565. The current market price of ABB India is Rs 1438.8.

ABB India Ltd., incorporated in the year 1949, is a Large Cap company (having a market cap of Rs 30578.38 Crore) operating in Engineering sector.

Financials
For the quarter ended 31-12-2020, the company reported a Standalone sales of Rs 1681.95 Crore, up 5.11 % from last quarter Sales of Rs 1600.11 Crore and down 12.77 % from last year same quarter Sales of Rs 1928.25 Crore Company reported net profit after tax of Rs 57.56 Crore in latest quarter.

Investment Rationale
ABB is a pure-play on longer term industrial automation and the ‘Make-in India’ theme, and stands to benefit from the ongoing PLI-driven increase in manufacturing across the country. The brokerage has largely maintained CY21E/CY22E estimates. While the slow recovery in order inflow/execution needs to be carefully monitored, there is the case of pent-up demand (domestic as well as export market) in CY21. The short-cycle nature of the business implies recovery could be very swift if the economy continues to improve.


Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of Dec 30, 2020, while FIIs held 4.1 per cent, DIIs 7 per cent and public and others 14 per cent.





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