Moneycontrol PRO
Upcoming Webinar:Prashant Shah explains ‘Irrelevance of Bull & Bear Markets for Success in Technical Analysis’. Register For Free!

Buy Abbott India; target of Rs 19030: ICICI Direct

ICICI Direct is bullish on Abbott India has recommended buy rating on the stock with a target price of Rs 19030 in its research report dated June 09, 2020.

June 15, 2020 / 09:43 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

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

Disclaimer: 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.

Karun Varma
first published: Jun 15, 2020 09:43 am

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark