Abbott India Ltd. share price target

Sales/EBITDA/PAT reported -0.4%, -1.7%, -2.1% below our estimates. EBITDA Margin reported at 40 bps below our estimates

The company also markets some leading brands of Novo Nordisk and Abbott Healthcare for which it receives distribution margins. Some of the leading distributed brands- Human Mixtard, Ryzodeg, Novomix and...

New introduction tempo also maintained- Overall growth continues to be driven by legacy power brands (top 10 brands CAGR ~10% between January 23-26 despite slowdown in Mixtard and Novomix) and traction in few brands from the marketed portfolio. The company remains a standout performer among MNCs on the back of new products launch trajectory (+100 launches in the last 12 years and another 75 planned for the next 5 years) and performance consistency in most of the legacy brands. In FY25, the company introduced 7 new brands- Citrosoda UTI, Digene Insta,...

Abbott India’s (Abbott) Q2FY26 revenue grew at a modest pace of 7.6% YoY. We believe moderation in growth was mainly due to discontinuation of insulin pens for Human Mixtard, Levemir and Xultophy by Novo Nordisk in India as it prioritises capacity for GLP-1 brands Ozempic and Wegovy.

Q2FY26- Decent print driven by growth in some power brands- Revenues grew ~8% YoY to 1757 crore. As per IQVIA, some of the power brands such as Thyronorm (Hormonal), Udiliv (GI), Cremaffin Plus (GI) and Duphalac (GI) witnessed decent growth along with some marketed brands of Novo Nordisk and Abbott Healthcare such as Rybelsus (Semaglutide) and Ryzodeg (Insulin). While Mixtard (Insulin) and Novomix (Anti-Diabetic) registered de-growth during the quarter. EBITDA grew ~14% YoY to 502...

Sales reported 1.3% below while EBITDA/PAT reported 4.5%/6.4% above our estimates. EBITDA margin was 160 bps higher estimates

Strong history of product launches: Abbott India has been steadily growing led by consistent launches of both - own and Novo Nordisk’s products (marketing). Abbott India has launched over 100 products in India in the last 12 years and we expect the pipeline to stay strong.

Sales in-line; EBITDA/PAT lower vs our estimates. EBITDA margin reported at 25.6%; core portfolio EBITDA margin was at 36.7%

Novo's oral semaglutide Rybelsus is growing at a robust 173% CAGR over a 3Y period to Rs 4bn, as on MAT MAY'25

Abbott India’s (Abbott) revenue grew 12% YoY ahead of most MNCs (avg. growth of ~10% YoY and IPM growth of ~8% YoY in Q4FY25). Abbott’s growth was aided by healthy traction in its own brands along with key brands of Novo Nordisk like Rybelsus and Ryzodeg.

Novo Nordisk insulin brand outgo to result in 330 bps and 670 bps increase in EBITDA margin to 30.9% and 34.9% for FY26E and FY27E

Sales expected to reach USD 1bn, driven by industry-leading MR productivity of Rs 14.9mn by FY27E from Rs 11.5mn in FY24

Abbott India’s (Abbott) impressive revenue growth of 12.3% YoY in Q3FY25 was ahead of our expectation. As per IQVIA, this may be driven by key brands of Novo Nordisk like Rybelsus and Ryzodeg and owned brands like Duphalac, Udiliv and Thyronorm.

We maintain a BUY rating on the stock

we maintain a BUY rating on the stock. We have set a target price of Rs 31,420/share, which implies an upside potential of 12% from the CMP.

We recommend a BUY with a target price of Rs 31,420/share (46.5x P/E for FY26E), implying an upside of 10% from the CMP.

Earnings were in line with our estimates, where sales grew by 5% y-o-y to Rs 1,557 crore (1.6% below our estimates), EBITDA grew by 10% y-o-y to Rs 3,910 crore.

We have BUY on the Stock

Abbott India’s (Abbott) Q4FY24 revenue growth of 7% was slightly below expectation of 9%; however, its 9.4% growth in FY24 was still ahead of industry growth of ~8%. Sequential drop of 197/407bps in gross/EBITDA margin was on account of higher third-party sourcing and higher overhead cost.

We have BUY on the stock.