HSBC has maintained a ‘Hold’ rating on ABB India Ltd, assigning a target price of ₹5,500, suggesting limited downside from the current market price of ₹5,565.00.
The brokerage noted that ABB has announced a price increase of around 5% for its Electrification products, effective April 2, 2025. HSBC highlighted that the company has consistently hiked prices in recent years, and a large portion of its margin expansion and order inflow growth has been driven by these pricing actions, rather than volume or scale efficiencies.
However, HSBC believes that margins may have peaked, indicating that future growth in profitability may be capped unless new volume-driven levers emerge. The brokerage maintains a cautious stance, citing that the current valuations already reflect the recent operational outperformance and pricing gains.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decision
