capital_goods
ABB Power Products & Systems
ABB · Nifty 50
₹7,164
Price 2026-06-17
At a Glance
Fundamental
80/100
STRONG
Trust
95/100
Verification
Coverage
78/100
MODERATE
Quick Take
ABB Power Products & Systems scores 80/100 on fundamentals (strong). ABB Power Products & Systems: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 80/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 38.8% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 38.84% is strong efficiency-driven and stable. Net margin of 23.8% × asset turnover of 0.94x × leverage of 1.7x.
What This Means
Net margin of 23.8% means the company keeps ₹23.8 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.94x means the company efficiently uses its assets to generate revenue. Leverage of 1.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
38.8%
Operating
16.8%
Net
23.8%
Gross margin 38.8% → operating margin 16.8% → net margin 23.8%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.4x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 118.9x — very comfortable. Debt service is not a concern.
Free Cash Flow
MODERATEFCF margin at 7.7% — moderate. Generating cash after investments.
Peer Comparison
ABB Power Products & Systems is compared against 10 peers in the capital_goods sector.
Key Watchpoints
Breaks above ₹7522 (+5%)
Trend reversal confirmation
Breaks below ₹6806 (-5%)
Further downside risk
PE reverts to 5Y median of 91.0
Valuation normalization
Capital_Goods sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
OCF is only 0.4x net income. Profit not converting to cash — aggressive accounting possible.
Tight liquidity. Monitor cash position and access to credit lines.
Potential accounting concerns. Cross-check with earnings quality flags.
Analysts recommend selling. Mean: 3.6/5. Investigate why.
High revenue multiple. Market pricing in significant growth or margins expansion.
Profits are from core operations, not one-offs. High quality.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 4 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes