ABB India Ltd has been in the spotlight recently, with its share price experiencing notable fluctuations. As of October 18, 2024, the share price rose by 1.07%, closing at ₹8,783.00, up from the previous day’s close of ₹8,690.70. This increase is part of a broader trend, as the stock has shown significant gains over the past year, with a remarkable 114.31% return.
Main Points
- 1 Current ABB India Share Price Market Overview
- 2 ABB India Share Price Technical Analysis
- 3 Key Levels
- 4 Indicators
- 5 ABB India Share Price Fundamental Analysis
- 6 Revenue and Profitability
- 7 Dividend Payout
- 8 Financial Health
- 9 Market Sentiment and Movement Causes
- 10 ABB India Share Price Bearish Reasons
- 11 Long-Term Performance
- Market Capitalization: ABB India boasts a market cap of approximately ₹179,195 crores.
- P/E Ratio: The stock is currently trading at a P/E ratio of 121.35, indicating a high valuation compared to its earnings.
- 52-Week Range: The stock has seen a 52-week high of ₹9,149.95 and a low of ₹3,850.00, showcasing its volatility in the market.
Key Levels
- Support Levels:
- Support 1: ₹8,275
- Support 2: ₹8,178
- Support 3: ₹8,120
- Resistance Levels:
- Resistance 1: ₹8,430
- Resistance 2: ₹8,488
- Resistance 3: ₹8,585
Indicators
Recent technical indicators suggest a bullish sentiment for ABB India shares:
- A 5-Day EMA Crossover has triggered a bullish signal on the daily chart.
- The average price gain following similar signals over the last five years has been around 3.79% within seven days.
Revenue and Profitability
In its latest quarterly report for June 2024, ABB India reported total income of approximately ₹2,830.86 crores, marking a year-on-year increase of 12.84%. However, there was a quarter-on-quarter revenue decline of about 7.89%, which is the lowest in three years.
Dividend Payout
ABB India declared an impressive equity dividend of 533%, amounting to ₹10.66 per share on August 5, 2024. This reflects the company’s commitment to returning value to its shareholders.
Financial Health
The company maintains a strong financial position with minimal debt (debt-to-equity ratio of 0.01) and healthy return metrics:
- Return on Equity (ROE): 25.30%
- Return on Capital Employed (ROCE): 30.7%
Market Sentiment and Movement Causes
The recent upward movement in ABB India’s share price can be attributed to several factors:
- Positive Earnings Reports: The company’s strong financial performance and consistent revenue growth have bolstered investor confidence.
- Market Trends: The overall bullish trend in the capital goods sector has also played a role in driving ABB India’s stock performance.
- Investor Sentiment: Analysts remain optimistic about ABB India’s growth potential due to its innovative solutions in automation and power technology.
Despite these positives, there are some bearish indicators that investors should consider:
- The stock’s high valuation compared to earnings may raise concerns about sustainability.
- Recent quarterly revenue declines could signal potential challenges ahead.
Long-Term Performance
Over the last five years, ABB India has delivered impressive returns:
- Five-Year Return: Approximately 464.35%
- Three-Year Return: Around 380.08%
These figures highlight the stock’s robust performance over an extended period, making it an attractive option for long-term investors.
