ABBOTINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

Here’s a detailed analysis of Abbott India Ltd (ABBOTINDIA)

🧾 Core Financials

Profitability & Growth

Quarterly PAT is stable at ₹366–367 Cr, with a 11.5% YoY growth, indicating consistent performance.

EPS: ₹683 — exceptionally strong, reflecting high earnings quality.

ROE: 35.7% and ROCE: 46.2% — elite-level returns, showcasing superior capital efficiency.

Debt & Liquidity

Debt-to-equity: 0.05 — virtually debt-free, ensuring financial resilience.

Dividend Yield: 1.54% — modest but reliable, suitable for long-term income investors.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 45.4 33.4 Premium valuation

P/B Ratio ~15.6 ~5.2 High book premium

PEG Ratio 2.16 ~1 Overpriced relative to growth

Intrinsic Value ~₹26,000–₹28,000 — Slightly overvalued

The stock trades at a premium, justified by its strong fundamentals, but PEG suggests limited upside unless growth accelerates.

🏢 Business Model & Competitive Edge

Core Operations: Pharmaceuticals, diagnostics, and nutritional products.

Strengths

Strong brand equity and diversified product portfolio.

High-margin prescription drugs and OTC products.

Efficient supply chain and robust cash flows.

Risks

Valuation risk due to high PEG.

Regulatory headwinds and pricing controls in pharma.

📉 Technical & Entry Zone

Current Price: ₹30,980

DMA 50/200: ₹32,151 / ₹30,979 — trading near long-term support.

RSI: 38.9 — approaching oversold territory.

MACD: -535 — bearish momentum.

Suggested Entry Zone: ₹28,000–₹29,500 range, ideally near ₹25,260 support if correction continues.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for defensive exposure and consistent earnings.

Wait for dips before fresh entry due to valuation stretch.

Ideal for long-term only if

Earnings growth sustains above 10% CAGR.

Valuation normalizes below PEG 1.5 and P/E < 40.

Would you like a peer comparison with GlaxoSmithKline Pharma or a sector outlook for Indian healthcare?

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