Abbott India Ltd.

NSE: ABBOTINDIA | BSE: 500488 | ISIN: INE358A01014 | Industry: Pharmaceuticals
| Expensive Performer
31265.0000 -355.00 (-1.12%)
NSE Jun 23, 2025 09:08 AM
Volume: 18
 

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Abbott India Ltd.
20 May 2019
31265.00
-1.12%
HDFC Securities
We believe BOOT is in the sweetest spot of the Indian pharma market (IPM), with leadership in women's hormones, hypothyroidism, niche gastro treatments, and neuro-ailments. Unlike other MNCs, BOOT has the freedom to launch new products/brands in existing therapies in India. Having a presence in growing therapies, BOOT is estimated to report ~13% revenue CAGR over FY19-21, while select price hikes will drive ~60bps margin expansion, resulting in ~18% earnings growth. With the ability to generate Rs ~3bn+ annual FCFs, super-rich ROICs and strong visibility on growth, we believe BOOT is the best play in the Indian pharma market. While we don't actively cover BOOT, a fair value of Rs 8,950 (30x FY21E EPS) is apparent to us. Abbott India (BOOT) is one of the strongest pharma MNCs with six Rs 1bn+ brands, 36 number one brands, and a substantial presence in both chronic and specialty segments. Historical financial performance has been robust with 16% organic rev CAGR, 25% EBITDA CAGR and 26% PAT CAGR over FY14-18. Adjusted for cash (~Rs 13bn, Sep-18), ROIC has been at 70% plus even as dividend payouts have been ~30%.
Abbott India Ltd. is trading above all available SMAs
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