ABBOTINDIA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.5

Here’s a deep dive into ABBOTINDIA’s fundamentals and valuation outlook 🧠📊

📌 Core Financials Assessment

Revenue & Profit Growth

Quarterly PAT improved to ₹367 Cr. from ₹361 Cr., showing steady growth.

Qtr Profit Variation stands at 27.9%, indicating healthy profit momentum.

Profitability

ROCE of 46.2% and ROE of 35.7% are exceptional and well above industry norms, reflecting strong capital efficiency.

EPS at ₹666 confirms high earnings quality.

Debt Management & Liquidity

Debt to Equity: Just 0.05, which reflects negligible debt burden.

Cash flows not specified, but low debt + high return metrics suggest strong free cash flow.

📉 Valuation Metrics

Indicator Value Interpretation

P/E Ratio 50.4 High vs. industry PE of 32; signals premium pricing

P/B Ratio ~16.87 Valuation-rich; not ideal for value buying

PEG Ratio 2.40 Above 1; suggests overvaluation relative to growth

Intrinsic Value Estimated below ₹30,000 Implied from valuation ratios and return metrics

🧬 Business Model & Competitive Advantage

Operates in the pharmaceutical and healthcare sector—a defensible, recession-resistant industry.

The brand carries strong credibility, with established distribution networks and a diversified product portfolio.

Low debt, consistently strong returns, and pricing power contribute to its moat.

📌 Technical Signals & Entry Zone

DMA 50: ₹33,171, DMA 200: ₹30,606 — current price slightly above short-term average.

RSI at 47.8 suggests neutral momentum—neither overbought nor oversold.

MACD positive, though volume slightly below average.

🎯 Entry Zone Recommendation

Ideal accumulation zone: ₹30,500 – ₹32,000

A dip below ₹31,000 might offer a favorable entry for long-term investors.

⏳ Long-Term Holding Guidance

Given strong financials, premium valuation, low debt, and long-term healthcare demand

🟢 Buy on dips

🟡 Hold for compounding gains over 5–10 years

🔴 Avoid for short-term value trades due to high valuation

Let me know if you’d like a peer comparison or target price range with historical returns 📈

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