ABB India Ltd.

Let's start our journey of equity analysis with the first stock from our list. Let's start with ABB.

Main objective of ABB is to manufacture heavy electrical equipments like transformers, electric motors, aluminium conductors, circuit breakers, furnaces, switchboard, panels and also power generation, transmission and distribution. It comprises of about 1000 companies spanning across 140 countries.

Now let's move to the performance of the company from last few years.

(Click to enlarge)

The first chart shows the total earnings for ABB for last 10 years. You can see some large variations which should not be the case for a good company.

This second chart shows the return on equity for ABB for last 10 years. Please note the reduction of ROE in recent few year. Not a good sign.

The Book value for ABB is not growing from last couple of years.

We can see the effect of all these on the price. Notice the rise and fall of share price with respect to the total earnings.