Buy Abbott India; target of Rs 25,243: Sharekhan

Sharekhan's research report on Abbott India

AIOCD data showed that Abbott India’s sales growth has been beating Indian Pharma Market (IPM’s) growth for the past several months. This indicates resilience of the Abbott’s key brands across focused therapies such as women’s health and gastro (largest contributor to sales). Abbott’s average revenue growth for Q4FY23E is in line with our estimate. We, hence, maintain our revenue growth estimate at 11.5% CAGR and earnings growth estimate at 16.9% CAGR over FY2022-FY2025E, respectively.

Outlook

We continue to value the stock at a P/E of 42x (a 15% discount to historical average) its unchanged FY2025 EPS estimate and maintain PT at Rs. 25,243 and the Buy rating on it.