ABB India shares soar 8% as post-earnings rally extends to second day
₹5,389 apiece. Investors continued to express optimism following the company's impressive performance in Q4CY23. In the previous trading session, the company's shares hit a 10% upper circuit limit after it released its Q4 results on Tuesday, surpassing analysts' expectations.
This prompted brokerage firms to raise their target prices, further boosting the stock for the second consecutive session. Domestic brokerage firm Motilal Oswal lifted its DCF-based target price to ₹5,800 from an earlier target price of ₹5,480 apiece. The stock remains the brokerage's top pick in the sector.
Similarly, BoB Capital Markets also lifted its target price to ₹5,000 apiece from ₹4,700. However, the brokerage retained its 'HOLD' on limited upside potential. Also Read: Stay light ahead of the elections; defence, engineering, railways, infra look overvalued, says Jimeet Modi of SAMCO The company reported a profit after tax of ₹345 crore (up 13% YoY) for the fourth quarter and ₹1,248 crore (up 22% YoY) for CY2023.
It reported ₹2,757 crore in revenues for the fourth quarter and, for the first time, ₹10,447 crore for CY2023. Seamless execution of a strong backlog, revenue mix, service focus, and capacity utilisation led to increased revenue across almost all businesses and divisions. It's important to note that the company announces its financial results based on the calendar year, not the financial year starting from April to March.
Its total orders for Q4CY23 stood at ₹3,147 crore, up 35% YoY. The company continues to have a strong order backlog as of December 31, 2023, at ₹8,404 crore, an increase of 30% YoY, which provides revenue visibility and is well aligned to support growth plans in the coming periods. Also Read: Stock Check: JSW Infra
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