ABB India, L&T, Cummins: Have industrial stocks in your portfolio? Check what Nomura's latest report says

Nomura on ABB, L&T: Global brokerage Nomura, in its latest report on industrial stocks, has double downgraded ABB stock to a 'buy' rating but has raised the target price to Rs 6,660 from Rs 5,740. The company's shares closed at Rs 6,647.20 apiece on the BSE in the previous session. The brokerage said that it has downgraded the stock on rich valuations.

Nomura notes that the earnings momentum will continue on robust demand and sustained healthy pricing power. It has raised earnings estimates for Cummins, ABB on margin improvement, and L&T for execution.

On L&T, the brokerage has maintained a 'buy' and has revised the target price upwards to Rs 4,230 from Rs 4,090 earlier.

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Further, Nomura has maintained a 'neutral' rating on Cummins but has raised the target price to Rs 3,040 from Rs 2,510 earlier.

On Siemens, the brokerage has maintained an 'underperform' rating with a target of Rs 3,960.

ABB India's CY23 Annual Report Highlights

InCred Equities highlights the following points

• ABB delivered a healthy performance across segments led by the broad-based revival of capex across traditional and emerging sectors. For CY23, order book jumped 30 per cent YoY to nearly Rs 84 billion, while order intake increased 23 per cent to Rs 123 billion. Revenue stood at Rs 104.5 billion (+22% YoY) while PAT surged by 65 per cent YoY to Rs 12.5 billion.
• ABB India with its diverse portfolio is strategically positioned to capitalise on the upsurge in economic activities across sectors including power transmission, clean energy, railways, metro, and public infrastructure.
• The focus on local manufacturing with PLI in digital India, high-end local manufacturing including electronics, the expansion of railways and metros and continued initiatives for energy transition and security augur well for the company.

The S&P BSE Industrials index has jumped 79 per cent in the past one year as compared to a 22 per cent rise in the benchmark S&P BSE Sensex. ABB India shares have jumped around 108 per cent during the period.