Buy Abott India; target of Rs 32,500: ICICI Securities

About this update from Abbott India Limited

ICICI Securitie's research report on Abott IndiaAbbott 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. MNC companies like Abbott take timely price hikes on their non-NLEM portfolio which along with operating leverage may drive margins hereon.OutlookWe trim our revenue estimates by 2-3% for FY25-26E and EPS estimates by 2% for FY26E to factor slowdown in key brands. The stock currently trades at valuations of 39.2x FY25E and 34.1x FY26E earnings and EV/EBITDA multiple of 31.1x FY25E and 26.8x FY26E. We maintain BUY with a revised target price of INR 32,500 (INR 33,000 earlier) based on 42x FY26E EPS.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.ICICI_Abbott India160524

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