Buy Abbott India; target of Rs 19030: ICICI Direct

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26 Aug, 2025 12:21

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ICICI Direct's research report on Abbott India

While Q4FY20 results were subdued as the nationwide lockdown marginally impacted availability of raw materials, finished goods and supply chain distribution, overall FY20 revenues grew 11.3% YoY to Rs 4093.1 crore, mainly due to strong growth in key therapies & power brands. EBITDA margins improved 204 bps YoY to 18.5% mainly due to better operational leverage. EBITDA grew 25.1% YoY to Rs 756.4 crore. PAT grew 31.7% YoY to Rs 592.9 crore. Delta vis-à-vis EBITDA was mainly due to lower tax rate.

Outlook

We continue to believe in Abbott’s strong growth track in power brands and capability of new launches on a fairly consistent basis (+100 launches in the last 10 years). We upgrade the stock from HOLD to BUY and arrive at a target price of Rs 19030 based on 45x FY22 EPS of Rs 422.8.

For all recommendations report, click here

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