ABBOTINDIA - Investment Analysis

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

Investment Rating: 4.3

📊 Fundamental Analysis

Abbott India Ltd (ABBOTINDIA) is a fundamentally strong company with impressive long-term metrics

ROE (35.7%) & ROCE (46.2%): Exceptional returns on equity and capital employed, indicating efficient use of shareholder funds and capital.

Debt-to-Equity (0.05): Virtually debt-free, which reduces financial risk.

Dividend Yield (1.41%): Reasonable yield for a growth-oriented pharma stock.

PEG Ratio (2.40): Slightly high, suggesting the stock is priced above its earnings growth rate—indicative of premium valuation.

EPS (₹666): Strong earnings per share, supporting long-term profitability.

📈 Technical & Valuation Insights

Current Price: ₹33,595

52-Week Range: ₹25,260 – ₹37,000

DMA 50 / DMA 200: ₹33,171 / ₹30,606 — trading above both, indicating bullish momentum.

RSI (47.8): Neutral zone, not overbought or oversold.

MACD (281): Positive, suggesting upward momentum.

Stock P/E (50.4) vs Industry P/E (32.0): Overvalued relative to peers.

🟢 Ideal Entry Price Zone

Given the high P/E and PEG, the stock is trading at a premium. A more attractive entry zone would be

₹30,500 – ₹32,000: This aligns with the 200 DMA and institutional buying zones

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₹31,100: Identified as a breakout level with potential upside

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If the stock dips into this range, it offers a better risk-reward for long-term investors.

🧭 Long-Term Outlook

Price Targets

2025: ₹41,640.48

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2027: ₹65,284.90

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2030: ₹129,505.59

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These projections suggest strong compounding potential over the next 5–10 years.

🛑 Exit Strategy (If Already Holding)

If you're already invested

Holding Period: Minimum 5–7 years to fully capitalize on compounding and sector growth.

Exit Triggers

PEG > 3.0 with slowing EPS growth.

ROE/ROCE decline below 25%.

Price exceeds ₹70,000 before 2027 (consider partial profit booking).

Trailing Stop-Loss: Set around 10–12% below current price to protect gains.

🧠 Final Verdict

Abbott India is a high-quality, low-debt, high-ROE pharma stock with strong long-term potential. While current valuations are rich, a dip into the ₹30,500–₹32,000 zone would be ideal for fresh entry. If you're holding, stay invested with a 5–10 year horizon and monitor growth metrics annually.

Would you like a comparison with other pharma stocks like Sun Pharma or Dr. Reddy’s to evaluate alternatives?

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in.tradingview.com

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dailybulls.in

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stockpricearchive.com

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