ABB India Market Cap Crosses $20 Billion, Becomes 1/5th Size of Parent Company

ABB is a leading Switzerland-based global technology company with a market valuation of $98.9 Billion, Its Indian arm ABB India Ltd. has surged market valuation of $20 Billion and has now become 1/5th the size of its parent company, after the stock of ABB India Ltd. have hit record highs this week as the company has reported better than expected results for Q4 FY 2023-24.

About ABB Ltd

The Switzerland-based group ABB operates in more than 100 countries across Europe, the Americas and the Asia, Middle East and Africa (AMEA) region. Europe and the Americas together account for over 70% of sales. It is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future.

Strong growth momentum in Orders

ABB India Ltd. has said,” “The increased demand for technologically superior solutions, coupled with the government’s capital expenditure focus on new-age themes such as energy efficiency, decarbonisation, and digitalization, has significantly driven our order momentum.”

Total orders surged to more than Rs.3,600 crores which remains the highest for the first quarter in the last five years. From the market point of view, the strongest growth has been seen in data centres, smart buildings, expansion in tier-2 and tier-3 cities, energy and logistics.

Q4 Performance of ABB India:

In the quarter ending March 2024, ABB India experienced a 28% year-on-year revenue growth to Rs. 3,080 crore, driven by robust order conversion across all divisions. Direct sales accounted for 59% of the total revenue, with partners contributing the remaining 41%. Additionally, the company’s EBITDA margin increased by 652 basis points YoY to 18.3%, while net profit for the quarter surged by 88% to Rs. 459 crore.

Conclusion: Amid strong Q4 FY 2023-24 results from ABB India Ltd. the stock of ABB India rallied as much as 11.2% to close the session at Rs.7,984.25 yesterday. With this rally, the market capitalization of ABB Ltd. has surged past $20 Billion and the company is now valued at a size equal to 1/5th of its Swedish parent company, ABB Ltd. The stock of ABB India has surged more than 70% in 2024 against a surge of 2% in the benchmark index NIFTY 50. The stock currently trades at Rs.8003.20 a piece up by +0.25% from its previous day’s closing price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.