Abbott India Q1 Review - Margins Contract; Stock Fairly Priced: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Abbott India Ltd.’s Q1 FY23 performance was below our estimate on the profitability front. Revenue grew 7.1% YoY to Rs 13.0 billion (our estimate: Rs 12.5 billion). Ebitda margin contracted 110 bps YoY to 20.7% led by lower gross margins and higher ‘other expenses’. Adjusted profit after tax grew 5.0% YoY to Rs 2.1 billion (our estimate: Rs 2.1 billion). Declining Covid cases have paved the way for a normalised environment. Yet, near-term growth could be limited due to high base and high competition in key products as well as elevated costs, which will keep margins in check. We remain positive on Abbott India given its exposure exclusively in domestic formulations, strong balance sheet with deep cash reserves, healthy return ratios, and strong brand equity built over the years. However, the recent run-up in stock price (~9% in three months) has made valuations fair..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Abbott India Q1 Review - Margins Contract; Stock Fairly Priced: ICICI Securities

Abbott India Q1 Review - Margins Contract; Stock Fairly Priced: ICICI Securities

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