ABB India shares rise 3% on $75 million investment to scale India operations


Shares of ABB India surged 2.64% to Rs 6,140 in Tuesday’s trading session after the company announced a $75 million investment in India to expand its manufacturing and R&D capabilities.

The fresh capital expenditure will strengthen local production of electrification and automation solutions, with capacity expansion planned across five manufacturing locations catering to critical infrastructure such as renewable energy, metro rail, and data centres.

ABB will also establish advanced R&D and testing laboratories in Hyderabad and Bengaluru, supporting the government’s Make in India initiative and enhancing innovation in sustainable technologies.

The investment is expected to create 300+ skilled jobs across engineering, operations, and research. Combined with its $35 million investment in 2025, ABB continues to scale its “local-for-local” strategy, with nearly 85% of products sold in India already manufactured locally.

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CEO Morten Wierod said the expansion will help ABB meet rising demand driven by energy transition, grid modernisation, data centre growth, and metro and high-speed rail projects in one of its fastest-growing markets.

On the valuation front, ABB India Ltd is currently trading at a Price-to-Earnings (P/E) ratio of 75.99, a Price-to-Sales (P/S) ratio of 8.3, and a Price-to-Book (P/B) ratio of 16.18, indicating that the stock is valued at a premium compared with many companies in the market.

From a technical perspective, according to data from Trendlyne, the 14-day Relative Strength Index (RSI) stands at 57.3. Typically, an RSI below 30 suggests the stock may be oversold, while an RSI above 70 indicates it may be overbought.

Looking at moving averages, the stock shows a bullish trend, as ABB India is trading above all 8 of its tracked Simple Moving Averages (SMAs).

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In terms of shareholding changes, during the December 2025 quarter, Foreign Institutional Investors (FIIs) slightly reduced their stake from 8.29% to 7.64%, whereas Mutual Funds increased their holdings from 4.04% to 4.18%, indicating a marginal rise in domestic institutional participation.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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