ABB India’s stock surged over 5% on February 18, 2025, following strong Q4 earnings and a generous dividend announcement. The electrification and automation giant posted a 54% year-on-year (YoY) rise in net profit for the December 2024 quarter, reinforcing its financial strength.
With revenue growth, improved margins, and an attractive ₹33.50 per share final dividend, investors are taking note. But does this make ABB India a compelling investment at current levels? Let’s break it down.
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ABB India’s Q4 financial performance
The company’s latest earnings report highlights solid growth across key financial metrics:
| Financial Metric | Q4 CY2024 | Q4 CY2023 | YoY Change |
| Net Profit | ₹532 crore | ₹345 crore | +54% |
| Revenue | ₹3,365 crore | ₹2,757 crore | +22% |
| EBITDA | ₹657.3 crore | ₹417.2 crore | +57.6% |
| EBITDA Margin | 19.5% | 15.1% | +4.4% |
| Final Dividend | ₹33.50 per share | – | – |
ABB India has consistently delivered strong financial results, and Q4 was no different. Despite some challenges in order inflows, the company’s robust operational efficiency and strong demand for its solutions have kept it on a growth trajectory.
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ABB Dividend announcement
Investors looking for dividend-paying stocks have another reason to keep an eye on ABB India. The ₹33.50 per share final dividend comes in addition to the ₹10.66 interim dividend declared in Q2 CY2024.
This move reflects ABB India’s commitment to rewarding its shareholders while maintaining a healthy balance sheet.
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ABB share price movement: Volatile but promising
ABB India’s stock price surged 5.14% in early trade on February 18, reaching an intra-day high of ₹5,511 from the previous close of ₹5,241.20.
However, the stock has seen fluctuations:
- 1-year return: +17.33%
- 2-year return: +69.22%
- 3-year return: +156.61% (multibagger stock)
- 52-week high: ₹9,200
- 52-week low: ₹4,449.60
Despite a 34% decline year-to-date (YTD), ABB India has delivered exceptional long-term returns, making it a key player in the electrification and automation sector.
Technical indicators: What the charts say
While the financials paint a strong picture, technical indicators suggest caution in the short term:
- RSI (Relative Strength Index): 31.4 (approaching oversold levels)
- MACD (Moving Average Convergence Divergence): -302 (bearish signal)
- The stock is trading below its 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMA)
This indicates that while the stock may be fundamentally strong, traders should be cautious about short-term volatility.
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Market outlook: Broader sentiment weighs in
While ABB India’s strong performance has excited investors, broader market movements remain a concern:
- Sensex fell 201.44 points to 75,795.42
- Nifty dipped 82.65 points to 22,876.85
- Market weakness is attributed to foreign fund outflows
Despite these headwinds, ABB India’s growth trajectory remains solid, making it a long-term investment candidate rather than a short-term trading play.
Key takeaways: Should you invest in ABB India?
✔ Strong Q4 earnings: 54% net profit growth, 22% revenue jump
✔ Dividend boost: ₹33.50 per share final dividend + ₹10.66 interim dividend
✔ Multibagger returns: 156.61% gain in 3 years
✔ Bullish analyst outlook: ₹7,401 target price (+41% upside)
❌ Short-term volatility: Trading below key SMAs, MACD bearish
For long-term investors, ABB India presents an attractive opportunity, backed by solid earnings growth, a strong dividend yield, and market leadership. However, short-term traders should watch for technical breakouts before entering.
As always, do your own research before investing. Stay tuned for more market updates!
