Buy Abbott India target of Rs 16880: ICICI Direct
ICICI Direct is bullish on Abbott India has recommended buy rating on the stock with a target price of Rs 16880 in its research report dated February 10, 2020.
February 13, 2020 / 12:50 PM IST
ICICI Direct's research report on Abbott India
The 9MFY20 revenues grew 13.3% YoY to Rs 3132 crore, mainly due to strong growth in key therapies & power brands. EBITDA margins improved 365 bps YoY to 19.7% mainly due to better operational leverage and impact of Ind-As 116. EBITDA grew 39% YoY to Rs 618 crore. Net profit grew 46% YoY to Rs 482 crore. Delta vis-à-vis EBITDA was mainly due to lower tax rate.
We expect revenues, EBITDA and PAT to grow at ~13%, 25% and 30% CAGR, respectively, in FY19-22E. We maintain BUY and arrive at a target price of Rs 16880 based on 36x FY22 EPS of Rs 469.
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