with a market valuation of 41,960 Crore, Abbott India Limited is a Large Cap company dealing in Pharmaceutical Industry. The firm offers a variety of nutritional goods, medicinal gadgets and diagnostic solutions. Abbott India Limited is a subsidiary of Abbott’s global pharmaceutical business in India and one of the fastest growing pharmaceutical firms in the country. Shares of Abbott India have gained 13.03% in 1 year and on a year-on-year (YTD) basis the stock is up 2.48% so far in 2022. The stock hit a 52-week high. 52-week low of 23,934.45 on October 5, 2021 and 15,514.00 on February 8, 2022. At the moment, the stock price is 19,763, which puts it 17.42% close to its 52-week high and 27.38% above its 52-week low. Brokerage ICICI Securities has placed a buy call on the shares of Abbott India, a debt-free company as per Value Research. Brokerage has set buying limit For a stock with a stop loss of 19200-19750 target price of 17,630.00 and 21,900.00. ICICI Securities maintains a target frame of 3 months for the stock to reach its given target price.
The brokerage said in a note that “pharma stocks have witnessed a sharp decline in the last 10 months and have fallen out of focus. Over the past few months, the pharma space has displayed resilience indicating the emergence of relative strength and offers favorable risk-reward setups. Among MNC pharma companies, Abbott India is our top choice as the stock has been resilient in the recent market corrections and is on the verge of generating a breakout above the last six month range ( 19600-15520) signals an upward resumption and provides a new entry opportunity.”
ICICI Securities said that “the stock is showing buying demand emerging from the 15500-16000 support zone as it confluences with the rising demand line joining the CY20 lows. 12186), CY21 ( 13960) and the 100 week rising EMA (currently .) 16883). Historically in the last decade the 100 week EMA has been tested only twice in CY13, CY17. In both the cases, it gave good returns in the subsequent quarters. We expect the stock to maintain a positive bias and move forward This is an 80% retracement of the entire decline (23934-15514) as the level of 21900 in the coming months.”
“Abbott has been consistent in brand-driven growth driven by favorable market dynamics with increased prescription stickiness and low perceived risk factors. The company continues to focus on new launches, which have been fairly consistent (over the past 10 years) 100 launches and line extensions. NLEM price hike of ~10.8% is also likely to be positive for an estimated NLEM portfolio exposure of ~21% for Abbott. Impact on value based growth in FY 2013. FY 2017-22 Revenues have grown at a CAGR of 11.1% in the last five years from FY17. Also, the EBITDA margin has increased from 13.7% in FY2017 to 22.1% in FY2012. We expect Abbott to have a CAGR of 12% in FY22-24E and to improve its margin profile to 23.8%,” the brokerage said.
“We remain positive on the Company due to our strong and sustainable business model backed by steady growth, debt-free B/s, favorable market dynamics with prescription viscosity and low perceived risk factors. ICICI Securities claimed that we at Power Brands continue to believe in Abbott’s strong growth track and the potential for new launches.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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