February 10, 2017 / 15:05 IST
The company’s twelve leading brands grew faster than the market and are likely to drive future growth. We expect margin improvement from the launch of 17 new products in FY16 and with the entry in high-margin vaccine segment. AIL is a debt-free cash rich company with cash/share of Rs410 and is poised for strong growth.
Outlook
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We upgrade Abbott India (AIL) to Buy from Hold rating with a TP of Rs 5,380 (earlier Rs 4,480) based on 24x March’19 EPS of Rs 224.0. We have rolled over the valuations to March’19. AIL’s results were in line with our expectations. The company reported 13%YoY growth in revenues, 150bps improvement in margin to 16.3% and 26%YoY growth in net profit.
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