Another absolute must-have in a long term Portfolio is ABB Ltd which is a subsidiary of the Swedish-Swiss MNC Asea Brown Boveri. ABB is the leading Electrical Equipment manufacturer for the Power Sector and as such has a robust Order Book. At the CMP of Rs 876 the scrip is trading at a rather extravagant PE multiple of 159 on TTM basis. However the Company had a weak Q2 and Q3 of FY10-11 but a vastly better Q4 FY10-11. The Company is expected to post good Q1 FY11-12 results.
The 200 DMA is at 807 and the 50 DMA at 858 which is likely to hold as a relatively stable bottom.
With a 52 week high of 974 and 52 week low of 595 current CMP of Rs 876 seems a fair price to take a srious look at the stock for long term investment purpose, since a constant possibility of future Delisting Open-Offer etc could maintain the necessary Investor interest in the Scrip.
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