UBS has retained a ‘Neutral’ stance on ABB India, assigning a target price of ₹5,900, following the company’s Q1CY25 earnings, which came in below consensus on both revenue and EBITDA fronts.
Revenue and EBITDA grew 3% YoY each, but missed street estimates by 8% and 6%, respectively. While base orders grew 10%, overall order growth was largely in line with the parent company’s subdued guidance, reflecting continued weakness in short-cycle industrial demand.
Despite solid execution and a strong EBITDA margin of 18.4%, UBS flagged concerns about muted order inflows and execution delays, which may limit near-term upside for the stock. The report suggested that while ABB continues to deliver steady operating margins, the lack of acceleration in order bookings could weigh on revenue visibility.
UBS recommends investors adopt a wait-and-watch approach, given the uncertain industrial demand environment, and awaits better clarity on large-scale order wins or cyclical recovery before turning more constructive.
