Motilal Oswal - ABB India (ABB) MOSL ABB (Sell)-Operational performance beats expectation

Report

Motilal Oswal

MOSL ABB (Sell)-Operational performance beats expectation

ABB: Operational performance beats expectation

(ABB IN, Mkt Cap USD3.5b, CMP INR1209, TP INR990, 18% Downside, Sell)

Operational performance beats expectations: 3QCY18 revenue rose 31% YoY to INR25.2b, ahead of our estimate of INR23.8b. EBIDTA margin of 7.7% (+70bp YoY) was ahead of our estimate of 7.2%. EBITDA grew 45% YoY to INR1.94b, ahead of our estimate of INR1.7b, supported by better revenue mix and operating leverage. PAT of INR1.1b was also above our estimate of INR980m. For 9MCY18, Sales/EBIDTA/PAT grew 24%/32%/26% and we expect 4QCY18 to register a growth of 20%/24%/34%.
Margin improvement supported by better revenue mix and operating leverage: Gross margins for the quarter stood at 36.7% (+50bp YoY), however, operating margins stood at 7.7% (+70bp YoY). Margin improvement was driven by (a) operating leverage on better execution, (b) better revenue mix during the quarter, and (c) strong control over raw material (RM) costs. EBIDTA for the quarter stood at INR1.9b (+45% YoY).
3Q order inflow up 22% YoY supported by weak base: Order inflow grew 22% YoY to INR24b, supported by weak base of 3QCY17 where order inflow had seen a decline of 35% YoY. Order inflow growth during the quarter was supported by base order growth of 16% YoY mainly in smart factory application sectors like Food and Beverages, and Building Automation. Order backlog stands at INR113b (-6% YoY), providing revenue visibility of 1.1x its TTM revenue.

31/10/2018 10 EN

Underlying

ABB India

ABB is engaged in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. Co. works with customers to engineer and install networks, facilities and plants with particular emphasis on enhancing efficiency, reliability and productivity for customers who generate, convert, transmit, distribute and consume energy. Co.'s portfolio ranges from switches and sockets to robots, and from large transformers to control systems that manage entire power networks and factories.

See profile

INE117A01022 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

See profile

Other Reports on these Companies

TheScreener

An unfavourable environment weighs on ABB INDIA, which sees a downgrade to Neutral

The independent financial analyst theScreener just requalified the general evaluation of ABB INDIA (IN), active in the Industrial Machinery industry. As regards its fundamental valuation, the title still shows 1 out of 4 stars and its market behaviour is seen as defensive. theScreener believes that the unfavourable environment weighs on the sector and penalises the company, which sees a downgrade to its general evaluation to Neutral. As of the analysis date February 11, 2022, the closing price was INR 2,179.25 and its target price was estimated at INR 1,910.58.

Free Trial

February 12, 2022 February 12, 2022 1 EN

Motilal Oswal

MOSL: ABB (Buy)-Robust order inflows indicate recovery is on track

ABB: Robust order inflows indicate recovery is on track (ABB IN, Mkt Cap USD5.3b, CMP INR1863, TP INR2110, 13% Upside, Buy) Balance Sheet strength intact ABB's 3QCY21 revenue came in 5% below our estimate, with a miss largely on account of the Process Automation business. However, with a higher share of exports and services, favorable sales mix, and pricing action, EBITDA margin stood at 9.5% (est. 7.5%), accompanied by gross margin expansion. The management indicated strong growth in short cycle orders, with order inflows up 46% YoY to INR19.1b - the highest in the last 12 quarters (a...

EUR 120.00

October 28, 2021 October 28, 2021 10 EN

Motilal Oswal

MOSL: ABB (Buy)-In line result; order inflows indicate recovery is on track

ABB: In line result; order inflows indicate recovery is on track (ABB IN, Mkt Cap USD4.8b, CMP INR1684, TP INR2000, 19% Upside, Buy) Balance Sheet strength intact ABB's 2QCY21 result stood in line with our expectations. While the demand recovery was strong in Jun'21, it lost 3-3.5 weeks of operations, which is reflected in its performance. Capacity utilization has now scaled up to 80-85% across its different manufacturing locations, indicating that a gradual recovery is in progress. While order inflows moderated sequentially, it stood healthy across all segments, with the Systems and S...

EUR 120.00

July 30, 2021 July 30, 2021 10 EN

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL ABB (Sell)-Operational performance beats expectation

An unfavourable environment weighs on ABB INDIA, which sees a downgrade to Neutral

MOSL: ABB (Buy)-Robust order inflows indicate recovery is on track

MOSL: ABB (Buy)-In line result; order inflows indicate recovery is on track

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe