ABB - (CMP/TP: Rs. 693/Rs. 540) (Rating: Sell) - Angel Broking

For 4QCY2013, we expect ABB India (ABB)'s top-line to decline by 3.0% yoy to Rs. 2,020cr. At the operating level, ABB's margin is expected to expand by 250bp yoy to 5.7%, aided by sharp improvement in margins of power system segment on back of cost control measures and supply chain optimizations. Consequently, its net profit is expected to grow by an impressive 159% yoy to Rs. 43cr (albeit on a low base). On account of high valuations, we assign a Sell rating to the stock with a target price of Rs. 540.

Source : Equity Bulls

Keywords