Buy Abbott India Ltd For Target Rs.18,660 - Sushil Finance
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Abbott India Ltd. recently announced its performance for the quarter ended December 31, 2020. Following are the key highlights.
Highlights from the Quarter (Q3 FY21)
During Q3 FY21, the top-line grew by 1.6% YoY at Rs.1,095 cr and up by 3.8% as compared to Rs.1,055 cr on qoq basis. Gross margins improved by 80 bps yoy to 45.3% to Rs.495.7 cr in this quarter due to better product mix. Employee cost also remained flat YoY supporting margins. Rise in SG&A expenses neutralized the gross margins resulting in flattish EBITDA margins.
EBITDA for Q3FY21 was Rs.241.8 cr, growth of 0.9% yoy, while Other income declined sharply by 45.9% YoY and 32.0% QoQ resulting in dip in 5.1% yoy in PBT. PAT was at Rs.177.1 cr dip of 5.1% yoy.
Outlook and Valuation
Company continues to outperform the industry on account of strong brand equity and increasing patient awareness. We expect revenue traction to pick up pace with line extensions, launch of new products and strong digital initiatives. The stock has been trading at 44.0x & 39.8x its FY22E & FY23E EPS of Rs.337.4 & Rs.373.2 resp. We recommend BUY on the stock with target price of Rs.18,660 for the period of 18-24 months .
To Read Complete Report & Disclaimer Click Here
Please refer disclaimer at https://www.sushilfinance.com/Disclamier/disclaimer
Member : BSE/ NSE/ MSEI. SEBI Registration No.-INZ000165135.
Above views are of the author and not of the website kindly read disclaimer
