⚠ 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: 3.7
| Stock Code | ABBOTINDIA | Market Cap | 57,286 Cr. | Current Price | 26,950 ₹ | High / Low | 37,000 ₹ |
| Stock P/E | 38.0 | Book Value | 1,888 ₹ | Dividend Yield | 1.77 % | ROCE | 46.2 % |
| ROE | 35.7 % | Face Value | 10.0 ₹ | DMA 50 | 28,253 ₹ | DMA 200 | 29,623 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | -0.11 % | PAT Qtr | 415 Cr. | PAT Prev Qtr | 366 Cr. |
| RSI | 38.4 | MACD | -348 | Volume | 10,869 | Avg Vol 1Wk | 9,334 |
| Low price | 25,950 ₹ | High price | 37,000 ₹ | PEG Ratio | 1.81 | Debt to equity | 0.05 |
| 52w Index | 9.05 % | Qtr Profit Var | 15.8 % | EPS | 710 ₹ | Industry PE | 28.2 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 366 Cr. to 415 Cr. (+15.8% variance), showing consistent growth momentum.
- Margins: ROE at 35.7% and ROCE at 46.2% are excellent, reflecting strong efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.05 indicates negligible leverage, a very strong balance sheet.
- Cash Flow: Strong profitability supports robust cash generation capacity.
💹 Valuation Indicators
- P/E Ratio: 38 vs. industry average of 28.2 — slightly expensive but supported by strong returns.
- P/B Ratio: Current price (₹26,950) vs. book value (₹1,888) → ~14.3x, premium valuation.
- PEG Ratio: 1.81, suggesting growth is priced at a premium.
- Intrinsic Value: Valuation is stretched but justified by strong fundamentals and brand strength.
🏢 Business Model & Competitive Advantage
- Abbott India operates in pharmaceuticals and healthcare, with a strong portfolio of branded generics and specialty drugs.
- Competitive advantage lies in global brand recognition, diversified product offerings, and leadership in therapeutic segments.
📈 Technicals & Entry Zone
- DMA 50 (₹28,253) and DMA 200 (₹29,623) are above current price, showing weakness.
- RSI at 38.4 indicates oversold territory; MACD negative suggests bearish sentiment.
- Entry Zone: Attractive near ₹25,500–26,500 for long-term investors.
- Long-Term Holding: Strong fundamentals justify holding; suitable for compounding wealth in healthcare sector.
✅ Positive
- Excellent ROE (35.7%) and ROCE (46.2%).
- Virtually debt-free (0.05 debt-to-equity).
- Strong global brand and diversified pharmaceutical portfolio.
⚠️ Limitation
- High valuation multiples (P/E 38, P/B 14.3x).
- Dividend yield of 1.77% is modest despite strong profits.
- PEG ratio (1.81) indicates growth is priced at a premium.
📉 Company Negative News
- DII holdings decreased (–0.11%), showing reduced domestic institutional confidence.
- Stock trading below DMA 50 and DMA 200, indicating technical weakness.
📈 Company Positive News
- Quarterly PAT improved to 415 Cr., reflecting operational strength.
- FII holdings increased (+0.03%), showing foreign investor confidence.
🏭 Industry
- Pharmaceutical sector benefits from rising healthcare demand and global expansion opportunities.
- Industry average P/E (28.2) highlights Abbott India’s premium valuation.
🔎 Conclusion
- Abbott India is financially strong with excellent returns and negligible debt.
- Valuations are stretched but supported by strong fundamentals and brand leadership.
- Recommendation: Accumulate near ₹25,500–26,500. Suitable for long-term investors seeking exposure to healthcare growth and consistent profitability.