Higher orders and margin boost needed to sustain ABB's valuations

ABB could be a key player given the improved market for short-cycle orders from the private sector and T&D, railways, data centres, and PLIs

While there should be satisfactory double-digit growth in capital goods revenues in the first quarter of the ongoing financial year (Q1FY25), order flow has been impacted by the elections. But strong order books from FY24 will ensure that revenue growth continues.

Margins may improve somewhat based on raw material price moderations and better operating leverage. Analysts are optimistic about pickups in order flow in Q2FY25. Seasonality should result in a pickup on air conditioning, and other cooling solutions. Exports may remain weak due to the soft global macro environment. Overall, the impact on PAT should be strongly