Strong Q1, bullish guidance indicate encouraging prospects for ABB

Most analysts positive on the stock, but rich valuations mean little room for disappointment

After a strong first quarter, (Jan-Mar, 2022 is Q1 for the company), ABB India has bullish guidance for both domestic and export markets. While demand seems to have held up despite inflation and the company has been able to pass on some costs, the monetary tightening which has just started could have a negative effect. The management seems confident about maintaining a 10 per cent margin for PBT (profit before tax) and of improving Net profit margins from current levels of 7.4 per cent. There are stronger export prospects. The domestic market is also picking for the company, which is