We value ABB India at 48x June27E PE (in line with long term average to reflect normalizing earnings post the recent years of high growth) to arrive at our target price of Rs4750. We also note that while EBITDA CAGR is decelerating, we observe higher than historical RoEs. 

 

Key risk factors that could sustain the shares above our target include: a) large value order wins, which have been volatile in recent quarters; b) acquisition-led growth; and c) greater than expected margin improvement