⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ABBOTINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | ABBOTINDIA | Market Cap | 55,853 Cr. | Current Price | 26,298 ₹ | High / Low | 37,000 ₹ |
| Stock P/E | 36.6 | Book Value | 1,888 ₹ | Dividend Yield | 1.81 % | ROCE | 46.2 % |
| ROE | 35.7 % | Face Value | 10.0 ₹ | DMA 50 | 27,243 ₹ | DMA 200 | 28,896 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | -0.11 % | PAT Qtr | 376 Cr. | PAT Prev Qtr | 415 Cr. |
| RSI | 42.2 | MACD | -126 | Volume | 9,155 | Avg Vol 1Wk | 8,033 |
| Low price | 26,000 ₹ | High price | 37,000 ₹ | PEG Ratio | 1.74 | Debt to equity | 0.05 |
| 52w Index | 2.71 % | Qtr Profit Var | 4.21 % | EPS | 717 ₹ | Industry PE | 27.6 |
📊 Core Financials
- Profitability: PAT declined from ₹415 Cr. to ₹376 Cr. (Qtr Profit Var: -4.21%)
- Margins: ROE at 35.7% and ROCE at 46.2% indicate exceptional efficiency
- Debt: Very low debt-to-equity ratio (0.05) shows strong financial discipline
- Cash Flow: EPS at ₹717 reflects strong earnings power
💰 Valuation Indicators
- P/E Ratio: 36.6 vs Industry PE of 27.6 → moderately overvalued
- P/B Ratio: Current Price ₹26,298 vs Book Value ₹1,888 → ~13.9x book
- PEG Ratio: 1.74 → growth priced at a premium
- Intrinsic Value: Trading at a premium but supported by strong fundamentals
🏢 Business Model & Health
- Market Cap: ₹55,853 Cr. reflects strong presence in pharmaceuticals
- Dividend Yield: 1.81% provides decent shareholder return
- Competitive Advantage: Strong brand recognition and diversified pharma portfolio
- Overall Health: Excellent efficiency and profitability, though valuations are stretched
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹24,000–25,000 for accumulation
- Long-Term Holding: Suitable for long-term investors given strong fundamentals and brand strength
✅ Positive
- Exceptional ROCE (46.2%) and ROE (35.7%)
- Low debt-to-equity ratio (0.05)
- Healthy dividend yield (1.81%)
⚠️ Limitation
- P/E ratio (36.6) above industry average
- P/B ratio ~13.9x indicates expensive valuation
- Quarterly profit declined slightly (-4.21%)
📉 Company Negative News
- DII holding decreased (-0.11%)
- Stock trading below DMA levels (50DMA ₹27,243, 200DMA ₹28,896)
📈 Company Positive News
- FII holding increased (+0.03%)
- Strong efficiency metrics support long-term confidence
🏭 Industry
- Industry PE: 27.6, lower than ABBOTINDIA’s PE
- Pharma sector benefits from consistent demand and innovation
🔎 Conclusion
ABBOTINDIA demonstrates exceptional efficiency and profitability with minimal debt, making it a fundamentally strong company.
However, valuations are stretched compared to industry peers, and recent profit decline raises mild caution.
The stock is suitable for long-term holding, with entry recommended near ₹24,000–25,000 to optimize risk-reward balance.