Buy Abbott India Ltd For Target Rs. 33,400 - Axis Securities Ltd
Est. Vs. Actual for Q4FY25: Revenue – INLINE; EBITDA Margin – BEAT; PAT – BEAT
Changes in Estimates post Q4FY25
FY26E/FY27E: Revenue: -1.3%/-0.5%; EBITDA Abs.: 2.2%/4.1%; PAT: 3.2%/5.3%;
Recommendation Rationale
AIL reported revenue growth of 11.5% YoY in Q4FY25, slightly ahead of the expected 9% YoY.
Abbott’s growth of 11.5% outpaced the IPM's growth of 9.0%. An increase in secondary sales, along with a higher share of Duphalac, Udiliv, and Rybelsus, which reported QoQ growth of 20%, 19%, and 44%, respectively, contributed to the improved market share.
The company reported EBITDA margins of 26.7%, flat QoQ, but 380 bps expansion YoY, primarily due to lower COGS.
Sector Outlook: Positive
Company Outlook & Guidance: Abbott India is growing 1.2x to 1.5x faster than IPM, driven by high brand recognition and an excellent product portfolio.
Current Valuation: PE 41x for FY27E Earnings
Current TP: Rs 33,400/share; ( Earlier TP : Rs 31,000/share)
Recommendation: BUY
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