Introduction
Asea Brown Boveri Ltd., or ABB India Ltd., is a well-known electrical engineering company listed on the Indian stock exchange. On May 16, 2024, the stock price of ABB India Ltd. set a new 52-week high for the year. With the stock prices touching Rs 8,375, the stock outperformed the electrical sector and yielded heavy profit rates for its investors.
Here is all you need to know about ABB India’s highest stock price in the year and how it became a stock market darling.
Reasons Behind the Stock Hitting a New High
ABB India dominates the electrical sector by a considerable margin. While the company has already been performing well over the stock market, a recent disclosure revealed that ABB’s Peenya campus in Bengaluru was certified water-positive by the Integrated Habitat Assessment (GRIHA) council. With a water positivity index 1.05, the company was approved as efficient enough to recharge the groundwater table.
This became an excellent reason for the stock prices of ABB India to reach new heights.
Analysing the Technicals
As of May 26, 2024, the stock trades at Rs 8,357. Trading at a great price, ABB India Ltd. has gained a competitive edge against several key competitors.
Another primary reason behind the surge in ABB India’s stock price is the inauguration of its factory in Nashik a year ago. Specifically dedicated to manufacturing products related to engineering, procurement, and construction, the company’s strategy is to rely on fast-moving industrial goods (FMIG). This defines the company’s focus on product-led business, resulting in a quick turnaround time and less working capital requirement.
All these factors resulted in the stock running fast on the exchange and leading its competitors in the run.
Why Is ABB India a Stock Market Darling?
ABB India’s stock has largely recovered over 100% from its 52-week low price. Moreover, with the stock hitting its recent all-time high, it has become a prime choice for investors. This is because of a positive sensation that runs through the market, predicting that the stock might see a massive rise in the days to come.
Many brokerage firms believe that ABB India’s stock is still open to improvements and is a great buy opportunity. ABB India is among the top 5 players in critical electrical markets.
About ABB India
ABB India Ltd. is a leading technology company that dominates the electrical sector in India. With over 105,000 employees, ABB has been serving the technical industry for over 130 years.
The company's core services include manufacturing and selling products and system solutions. The company deals with various industries, channel partners, and equipment manufacturers in India. The core operating areas of the company are robotics, discrete automation, electrification, and process automation segments.
The company is known to operate in five major segments:
- Power Systems
- Power products
- Process automation
- Discrete automation
- and low-voltage products.
Recently, the company has been performing great on the Indian Stock Exchange and has become an excellent choice for investors to consider putting their money into.
Talking about the stock performance of ABB India, the stock has yielded relatively high returns, with over 29% returns within one month and over 96% returns in the past six months. To outperform its competitors, ABB's stock has shown around 107% gains in the past year for its investors.
Conclusion
With its prices growing crazy on the stock exchange, ABB India Ltd. looks forward to excelling even more in the industry. The company's prospects seem clear as it forecasts to grow its earnings and revenue by 16.7% and 17.1% per annum in the coming years. Along with this, the company's EPS is also expected to grow by 16.5% per annum.
The company's current revenue is Rs 10,748 Cr in 2023 at the same time, its profit was recorded to be Rs 1,248 Cr in 2023. ABB India Ltd. has a lot of potential to lead the profitability quotient in the future.
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