Outperformer rating for Abbott India, target price Rs 18,130: CLSA

CLSA has maintained outperformer rating on Abbott India and cut target price to Rs 18,130 from Rs 20,320. Shares of Abbott India ended down 1.5 per cent at Rs 16,350.35 on Tuesday while the BSE Sensex closed 413.89 points down (-1.20 per cent) at 33,956.69.

Abbott India Ltd., incorporated in 1944, has a market cap of Rs 34667.28 crore, operating in pharmaceuticals sector.

Investment Rationale


Abbott India’s fourth quarter profit was a big miss as revenue growth and Ebitda margins disappointed, said CLSA. The lockdown will limit near-term growth, said CLSA, cutting FY21-FY22 EPS estimates by 9-11 per cent.

Financials

For the quarter ended March 31, 2020, the company reported standalone sales of Rs 961.20 crore, down -10.86 per cent from last quarter sales of Rs 1078.25 crore and up 6.06 per cent from last year same quarter sales of Rs 906.31 crore. The company reported net profit after tax of Rs 110.97 crore in the latest quarter.

Promoter/FII Holdings

Promoters held 74.98 per cent stake in the company as of March 31, 2020, while FIIs held 1.64 per cent, DIIs 5.91 and public and others 17.3 per cent.