Check Before You Invest : Abbott India Ltd

Q: Which industry/sub-sector does Abbott India Ltd belong to?

Abbott India Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q: Is Abbott India Ltd a good quality company?

Abbott India Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Abbott India Ltd undervalued or overvalued?

Abbott India Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 37.85, Historic Median: 48.72. Price to Book, Current: 12.3, Historic Median: 15.39. Price to Sales, Current: 8.48, Historic Median: 9.00. EV to EBITDA, Current: 25.91, Historic Median: 32.53

Q: Is Abbott India Ltd a good buy now?

Abbott India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Abbott India Ltd?

Abbott India Ltd revenue growth is 9.6% for FY-2025, which is in line with its 5-year CAGR of 9.38%, indicating stable growth.

Q: Gross Profit margin of Abbott India Ltd?

Abbott India Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.7% for FY-2025, which is above its 5-year median of 24.5%, indicating increasing margins.

Q: Operating Profit Margin of Abbott India Ltd?

Abbott India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.45% for FY-2025, which is above its 5-year median of 22.62% indicating increasing margins.

Q: Net Profit Margin of Abbott India Ltd?

Abbott India Ltd Net Profit Margin is 22.07% for FY-2025, is above its 5-year median of 17.75%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 29.7, Historic Median: 24.5. Operating Profit Margin (%), Current: 26.45, Historic Median: 22.62. Net Profit Margin (%), Current: 22.07, Historic Median: 17.75

Q: Return on Asset of Abbott India Ltd?

Abbott India Ltd Return on Asset is 25.53%, which is above its 5-year historical median of 21.71%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Abbott India Ltd?

Abbott India Ltd Return on capital employed is 47.87% for FY-2025, which is above its 5-year historical median of 42.93%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Abbott India Ltd

Snapshot

Q.1 Which industry/sub-sector does Abbott India Ltd belong to?

Abbott India Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Abbott India Ltd a good quality company?

Abbott India Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Abbott India Ltd undervalued or overvalued?

Abbott India Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	37.85	48.72
Price to Book	12.3	15.39
Price to Sales	8.48	9.00
EV to EBITDA	25.91	32.53

Q.4 Is Abbott India Ltd a good buy now?

Abbott India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Abbott India Ltd?

Abbott India Ltd revenue growth is 9.6% for FY-2025, which is in line with its 5-year CAGR of 9.38%, indicating stable growth.

Q.2 Gross Profit margin of Abbott India Ltd?

Abbott India Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.7% for FY-2025, which is above its 5-year median of 24.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Abbott India Ltd?

Abbott India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.45% for FY-2025, which is above its 5-year median of 22.62% indicating increasing margins.

Q.4 Net Profit Margin of Abbott India Ltd?

Abbott India Ltd Net Profit Margin is 22.07% for FY-2025, is above its 5-year median of 17.75%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	29.7	24.5
Operating Profit Margin (%)	26.45	22.62
Net Profit Margin (%)	22.07	17.75

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Abbott India Ltd?

Abbott India Ltd Return on Asset is 25.53%, which is above its 5-year historical median of 21.71%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Abbott India Ltd?

Abbott India Ltd Return on capital employed is 47.87% for FY-2025, which is above its 5-year historical median of 42.93%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Abbott India Ltd?

Abbott India Ltd Return on equity is 35.98% for FY-2025, which is above its 5-year historical median of 32.07%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Abbott India Ltd?

Abbott India Ltd Cash conversion cycle is -20 days, in line with its 5-year historical median of -20 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.19	1.24
ROE (%)	35.98	32.07
ROCE (%)	47.87	42.93
Cash Conversion Cycle	-20 days	-20 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Abbott India Ltd?

Abbott India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.14, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Abbott India Ltd?

Abbott India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Abbott India Ltd?

Q.1 Promoter shareholding and pledge status of Abbott India Ltd?

Promoters hold 74.99% of the Abbott India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Abbott India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Abbott India Ltd vs industry peers?

Abbott India Ltd revenue CAGR is 9.38%, compared to the industry median CAGR of 9.13%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	9.6	9.1
Gross Profit Growth (%)	16	13.2
Operating Profit Growth (%)	16.5	13.2
Net Profit Growth (%)	17.7	14.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.19	0.87
ROE (%)	35.98	18.75
ROCE (%)	47.87	20.47
Cash Conversion Cycle (days)	-20.04	63

Valuation & price assessment

Q.1 Stock return of Abbott India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 19.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	19.5%	11.5%	9%	-11.1%

Q.2 Valuation ratios of Abbott India Ltd vs historical?

The current P/E ratio of 37.85 is lower than its historical median of 48.72, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	37.85	48.72	31.09
Price to Book	12.3	15.39	2.85
Price to Sales	8.48	9.00	2.82
EV to EBITDA	25.91	32.53	15.99

Check more companies

1. Zydus Lifesciences

2. Dr. Reddys Lab

3. Lupin

4. Mankind Pharma

5. Aurobindo Pharma

6. Laurus Labs

7. Biocon

8. Alkem Laboratories

9. Glenmark Pharma

10. Abbott India

Check trending companies

1. Carborundum Universal Ltd.

2. Praj Industries Ltd.

3. MRF Ltd.

4. Reliance Power Ltd.

5. Bharat Heavy Electricals Ltd.

Check Before You Invest : Abbott India Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.