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

Sharekhan's research report on Abbott India

Abbott India Limited (Abbott) reported weaker-than-anticipated net income in Q4FY2023 Gross margin declined ~273.0 bps y-o-y to ~43.4% and EBITDA margin declined ~256 bps y-o-y to ~20.9% in Q4FY2023. PAT grew at a slower pace of ~9.5% y-o-y to Rs. 231.4 crore though, which was lower than the internal estimate of ~Rs. 275 crore. We believe Abbott’s strong market leadership in its key therapy product categories such as gastro and gynecology continue to be the key positives.

Outlook

We maintain Buy with an unchanged PT of Rs. 25,243. The stock currently trades at 41.4x/35.6x its FY2024E/FY2025E EPS.