ABOUT THE COMPANY

ABB India Limited is an Indian arm of the Swedish tech major ABB Group, involved in the electrification and automation, company serves factories, data centers, transportation, robotics, and infrastructure projects. Company has given 428% in the last 5 years with a 7.3% increase in the order book of the company in the past 7 months. P/E ratio of the company is 58x, which is significantly higher than the peer’s median of 44.7x, reflecting a premium valuation when compared to its competitors. Supported by the global demand in the data centers, renewables and infrastructure projects company exports accounted to nearly 15-20% of the revenue. FII’s investment has been decreasing dropping from 12.06% in June 2024 to 9.25% in June 2025.

Analysis of the Financial Statements

Revenue Growth Trend

Revenue moved from 5,821 crores in 2020 to 12,188 crores in 2025 with a CAGR for revenues stands at 20.29%, while its competing company Siemens Ltd (India) has a 4-year CAGR of 10-11%. CAGR rate can be a good sign for the retail investors, indicating that the company is ahead of its competitors and robust order book indicates the same in the future. 

December 2020	December 2021	December 2022	December 2023	December 2024
5,821 CRORES	6,934 CRORES	8,568 CRORES	10,447 CRORES	12,188 CRORES

Profitability & Margin Analysis

Operating profits of the company have increased from 5% to 19% in the past 4 years while the industry average being 8-9%. This indicates lower operational costs for the company when compared to its competitors. This is a sign that the management is focused on cost efficiency and increasing the profit, which would help company to scale profit faster when the sales increase as the fixed cost burden is already minimized.

December 2020	December 2021	December 2022	December 2023	December 2024
5%	8%	11%	14%	19%

Balance Sheet Strength

The total assets of the company have grown from 7,590 crores in December 2020 to 12,391 crores in December 2024 showing subsequent capital investment. This subsequent growth shows company ability to support expanded operations. This asset appreciation plus cutting operational costs can build a solid foundation for future earnings growth, provided execution stays on track.

Debt Profile

Borrowings of the company go down from 58 crores in 2020 to 52 crores in 2025 showing that the company works on a debt free model. Reserves showed a sharp increase from 3,564 crores to 7,033 crores, indicating a large portion of the assets are financed through retained earnings and not through debt. This makes the balance sheet healthier than if it was purely debt-driven. This conservative approach of the company may cap the aggressive growth opportunity compared to the leveraged peers.

Cash Flow Health

Operating cash flow of the company has been increasing sharply, i.e. 318 crores in December 2020 to 1,332 in December 2024, which shows that the company is easily able to convert its profit into cash. Cash Conversion Cycle of the company has been negative in the past years, indicating company is able to collect cash from its customers before settling dues of its supplier, strengthening liquidity and reducing reliance on debt.

Analysis of the Company Management (Investors presentation/Disclosures-based view)

Recent conference calls highlighted:

• Management is focused on keeping the disciplined growth with high operating profit margins and low cash conversion cycle.
• Management is focused on debt free model and plans to meet its all-investment requirements through reserves maintaining liquidity.
• Management credibility screens strong given multi-year delivery on growth and profitability without leverage.
• Promoters holding in the company i.e. 75% has been same across the years showing the promoters confidence in the company.

Disclaimer: The article is for informational purposes only and not investment advice.