Motilal Oswal Initiates Coverage on ABB India with a Price Target of Rs 6600

Motilal Oswal Research Report: ABB India

Key Highlights

• ABB India reported a positive surprise in its 4QCY25 results, with 52% YoY growth in order inflows and 27% YoY growth in base inflows and large order inflows.
• The company expects to maintain a similar run rate in inflows from emerging areas like renewables, data centers, and electronics.

Performance Analysis

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• EBITDA margin, adjusted for effects of labor code and forex fluctuations, stood in line with Motilal Oswal estimates.
• The company expects the impact of QCO-related costs to be minimal in the coming quarters, leading to margin improvement.

Outlook and Estimates

• Motilal Oswal raises its estimates by 9% each for CY26/27 to reflect better margins and roll forward its valuation to Mar'28 estimates.
• The revised target price is set at INR6,600 based on Discounted Cash Flow (DCF) analysis, implying a 55x Price-to-Earnings (P/E) ratio on Mar'28 estimates.