High valuations may cap further upside in ABB stock; prospects 'positive'

The company posted better than expected results for the March quarter, and prospects remain strong

ABB India beat expectations with net sales up 23 per cent year-on-year (YoY) and earnings before interest, tax, depreciation and amortisation (Ebitda) posting a strong growth of 52 per cent in the first quarter of the 2023 calendar year or Q1CY23 (the company has year-end on Dec 31). The sales growth came from the electrification and motion segments, where revenues grew 16 per cent and 36 per cent – YoY -- respectively. Process automation also grew by 23 per cent YoY. Robotics was relatively flat at 4 per cent growth.

The operating profit margins (OPM) rose 230 basis points (bps)