ABBOTINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | ABBOTINDIA | Market Cap | 54,049 Cr. | Current Price | 25,435 ₹ | High / Low | 37,000 ₹ |
| Stock P/E | 35.5 | Book Value | 1,888 ₹ | Dividend Yield | 1.87 % | ROCE | 46.2 % |
| ROE | 35.7 % | Face Value | 10.0 ₹ | DMA 50 | 26,246 ₹ | DMA 200 | 28,166 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | -0.07 % | PAT Qtr | 376 Cr. | PAT Prev Qtr | 415 Cr. |
| RSI | 42.3 | MACD | -281 | Volume | 5,620 | Avg Vol 1Wk | 18,845 |
| Low price | 25,150 ₹ | High price | 37,000 ₹ | PEG Ratio | 1.69 | Debt to equity | 0.05 |
| 52w Index | 2.41 % | Qtr Profit Var | 4.21 % | EPS | 717 ₹ | Industry PE | 30.1 |
📈 Positive
- Market capitalization of ₹54,049 Cr. ensures scale and stability in the pharmaceutical sector.
- Exceptional ROCE (46.2%) and ROE (35.7%) highlight superior capital efficiency.
- EPS of ₹717 reflects strong earnings power.
- Dividend yield of 1.87% provides consistent shareholder returns.
- Debt-to-equity ratio of 0.05 indicates very low leverage risk.
- FII holdings increased (+0.08%), showing foreign investor confidence.
⚠️ Limitation
- P/E ratio of 35.5 vs industry average of 30.1 suggests mild overvaluation.
- Quarterly PAT declined to ₹376 Cr. from ₹415 Cr., showing earnings pressure.
- RSI at 42.3 indicates weak buying strength.
- MACD negative (-281) highlights bearish momentum.
- DII holdings decreased (-0.07%), reflecting cautious domestic sentiment.
- Price trading below DMA 50 (₹26,246) and DMA 200 (₹28,166), showing weak technical trend.
🚨 Company Negative News
- Quarterly profit decline raises concerns about short-term earnings stability.
- Weak technical indicators (negative MACD, low RSI) suggest limited near-term upside.
🌟 Company Positive News
- Strong efficiency metrics (ROE, ROCE) continue to support long-term fundamentals.
- Dividend yield remains attractive compared to peers.
- Slight increase in FII holdings adds confidence.
🏭 Industry
- Industry P/E of 30.1 highlights ABBOTINDIA’s premium valuation.
- Pharmaceutical sector outlook remains stable, supported by healthcare demand.
- Competitive advantage lies in strong brand presence, diversified product portfolio, and consistent dividend policy.
📝 Conclusion
ABBOTINDIA is fundamentally strong with excellent ROE/ROCE, low debt, and consistent dividend support. However, valuations are slightly stretched and technical indicators remain weak.
🔑 **Entry Zone:** Attractive near ₹25,000–26,500 for accumulation.
📌 **Long-term Holding Guidance:** Suitable for long-term holding (5+ years). Consider partial profit booking near ₹34,000–36,000 if valuations remain elevated and earnings growth stabilizes.
This frames ABBOTINDIA as a fundamentally strong but technically weak candidate, ideal for long-term investors with patience. Would you like me to extend this into a swing trade overlay with short-term entry/exit levels and stop-loss guidance?