Multibagger Stock Update: This heavy electrical company to power Samskip’s new hydrogen-fueled container vessels built by Cochin Shipyard Ltd!

The stock is up by 60 per cent year to date and over 370 per cent in 3 years.

ABB Ltd will deliver a comprehensive power distribution system for two new-built short-sea container ships of the global logistics company Samskip Group headquartered in Rotterdam, Netherlands. The vessels will be among the world’s first of their kind to use hydrogen as a fuel.

Built by Cochin Shipyard Ltd, the largest shipbuilding and maintenance facility in India, the 135-meter ships are due for delivery in Q3 and Q4 of 2025, respectively. Both vessels will be operating between Oslo Fjord and Rotterdam, a distance of approximately 700 nautical miles.

ABB is providing a comprehensive technology package for Samskip's two new hydrogen fuel cell-powered vessels, the first of their kind in the world. The package includes ABB's power distribution, energy storage, and automation systems, as well as remote diagnostic support.

Hydrogen fuel cells produce electricity without emitting greenhouse gases, making them a promising solution for decarbonizing the shipping industry. Each of Samskip's vessels will be powered by a 3.2 MW hydrogen fuel cell, with diesel generators as backup.

Samskip aims to achieve net-zero emissions by 2040 and anticipates that each vessel will avoid around 25,000 tons of CO2 emissions a year when powered by fuel cells and using greenshore power. The project is in line with the International Maritime Organization's goal of net-zero GHG emissions from international shipping by 2050.

Earlier, ABB and SMS group are partnering to supply powertrain solutions for ArcelorMittal Nippon Steel's new hot strip mill in India. The project will increase Hazira's production capacity by around 5.5 million tons per year.

On Friday, shares of ABB India Ltd plunged 2.06 per cent to Rs 4,187.25 per share with an intraday high of Rs 4,295.90 and an intraday low of Rs 4,166.05. 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 88,000 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 60 per cent year to date and over 370 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.