Technical analyst Hunny Tarika, Fairwealth Securities has maintained ‘Buy’ rating on ABB Ltd stock to achieve a target of Rs 540.

According to Tarika, interested investors can buy the stock around Rs 463 with a stop loss of Rs 429.

Today (Monday, April 27, 2009), shares of the company opened at Rs 484 as against last closure at Rs 488.40 on Friday (April 24) on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio of the stock stood at 25.83 and 18.85 respectively. The share price has seen a 52-week high of Rs 1207 and a low of Rs 344 on BSE.

ABB is on intermediate uptrend may end its short term correction between 485-463 levels and then start to move towards the upward direction.

On April 24, ABB announced that it would intensify its restructuring programme to embark upon falling orders for lower-cost items and greater price competition.

The company said it now planned to slash costs by $2bn by 2010 from 2008 levels, as against previous $1.3bn target.

ABB preserved its operating profits goals to 2011, with the exception of the robotics segment.

The company said that its net profit during the first quarter of the existing fiscal dropped by 35 per cent to $652 million.

The company said that its sales fell by 9 per cent to $7.21bn, but rose by 3 per cent in local currencies.

ABB Ltd, on April 08, said tat it has established a new manufacturing plant near Banagalore.

The company said that its new facility will make circuit breakers, switch fuse units and high power rectifiers.

However, the company has not disclosed any financial information up till now.

Moreover, ther’re reports that ABB, a leading power and automation technology group, has increased its existence in eastern India with opening of a global centre of excellence (CoE) situated in Salt Lake, Kolkata.

ABB has extended its range and offering from the region to wrap up various engineering products and solutions for power T&D, industrial automation, in addition to infrastructure and electricals to both domestic as well as global market areas.

This centre will also deliver engineering and project management solutions to its clients in the metals section all through the world.