ABB India Q2 Review - Rich Valuation Leaves Little Upside: Dolat Capital
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Dolat Capital Report
ABB India Ltd.’s Q2 CY21 Ebitda miss (14%/21% versus our/consensus estimate) was primarily on the account of,
1. delays in manufacturing clearances which led to lower than expected sales in process automation business and
2. Ebit margin contraction of ~500 basis points QoQ in electrification business due to hardening of commodity prices.
Despite headwinds caused by pandemic, Motion business sustained strong momentum with ordering growth of up 92%/up 15% YoY/QoQ, which led to total order inflow growth of 41% YoY.
Order backlog stood at Rs 46 billion, 0.7 times trailing twelve months sales.
Data centers, food and beverage, pharma and electronics manufacturing are high growth areas for ABB India.
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