375 per cent returns: This multibagger heavy electrical company to roll out electric powertrain system for ArcelorMittal Nippon Steel’s new steel mill!

The company reported positive numbers in its quarterly results (Q1FY24) and annual results (FY23).

ABB Ltd and SMS group are partnering to supply powertrain solutions for ArcelorMittal Nippon Steel's new hot strip mill in India. The project is part of a major expansion of the site, which is already India's fifth-largest producer of crude steel. When it becomes operational in 2025, the new mill will increase Hazira's production capacity by around 5.5 million tons per year.

ABB will supply and install 13 MV drives and 16 large MV motors, which will form the drivetrain for the two key elements of the operation, the roughing mill and the finishing mill. The well-established direct torque control (DTC) technology embedded in ABB's drives will deliver a very fast and accurate response to any changes in the load on the motors during the rolling operations. This precision control will ensure the optimal quality of the finished steel product.

The multi-drive capability of the MV drives will be employed in some parts of the operation to control four motors in parallel, reducing the installation footprint and saving energy. A major technical challenge for ABB has been the design of the gearless drive system for the roughing mill. This provides greater control over the process while reducing the number of moving parts for increased reliability.

SMS group chose to work with ABB on this project because of its proven expertise in providing reliable, high-performance powertrain solutions for the demanding applications found in steel mills.

On Thursday, shares of ABB India Ltd plunged 1.47 per cent to Rs 4,267.05 per share with an intraday high of Rs 4,355.95 and an intraday low of Rs 4,260.95. The stock’s 52-week high is Rs 4,675.85 per share and its 52-week low is Rs 2,640.45.

According to the financials, the company has a market cap of over Rs 90,000 crore with a 5-year CAGR of 30 per cent. The company reported positive numbers in its Quarterly Results (Q1FY24) and annual results (FY23).

The stock is up by 40 per cent in just 1 year and over 375 per cent in 3 years. Investors should keep an eye on this Large-Cap stock under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.