Buy Abbott India; target Rs 1488: Firstcall Research

Firstcall's research report on Abbott India

"Abbott India's net profit jumps to Rs.297.10 million against Rs.295.20 million in the corresponding quarter ending of previous year, an increase of 0.64 percent. Revenue for the quarter rose by 6.89 percent to Rs. 4402.10 million from Rs.4118.20 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.13.98 a share during the quarter, registering 0.64 percent increase over previous year period. Profit before interest, depreciation and tax is Rs.491.90 millions as against Rs.501.80 millions in the corresponding period of the previous year."

Outlook and Conclusion: "At the current market price of Rs.1353.00, the stock P/E ratio is at 18.50 x CY13E and 17.15 x CY14E respectively. Earning per share (EPS) of the company for the earnings for CY13E and CY14E is seen at Rs.73.14 and Rs.78.89 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 10 percent and 12 percent over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 9.85 x for CY13E and 8.92 x for CY14E. Price to Book Value of the stock is expected to be at 3.72 x and 3.22 x respectively for CY13E and CY14E. We recommend 'BUY' in this particular scrip with a target price of Rs 1488 for Medium to Long term investment," says Firstcall Research report.

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