Abbott India Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹26,200.00+₹130.00 (+0.50%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Abbott India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Abbott India Limited, together with its subsidiaries, operates as a pharmaceutical company in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees3,679

Annual revenue₹6,927 Cr

How does it make money?

Turns over ₹6,927 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 3,679 employees supports ₹1.88 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.88 Cr

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 41.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 32.5% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.5%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 9.5% and earnings to grow about 11.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.5%

Est. earnings growth+11.3%

Analysts7

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +30% while net margin moved +26% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+30%

Margin effect+26%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 34.5x already prices in growth
✓ P/E is 33% below its own historical median of 51.3x — cheap by its own standards
✗ P/B of 11.66x is a steep premium to book
✓ Dividend yield of 2.00% pays you to wait

Quality vs. Valuation

Company Quality

83/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

34.5x

3Y Median

51.3x

40 monthly readings · mean 49.3x · range 35.4x–63.6x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 33% below its 3y median of 51.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 33.3x.

vs. its own history

Cheap

51.3x median over 40 months · -33%

vs. sector peers

Fair

33.3x median of 4 peers · +3%

vs. generic bands

Fair

15x–35x

EV/EBITDA

25.5x

PEG

1.94

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 25.4% to 31.4% over 3 years.
Cash generation is improving
Free cash flow is up 49% over 3 years.
Return on capital is rising
ROCE has improved from 38.5% to 41.9%.
High return on capital employed
ROCE of 41.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 52% over 3 years, from ₹113 Cr to ₹172 Cr.
🔴High leverageFinancial
Debt/Equity of 3.60x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 41.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 25.4% to 31.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 33% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.60x. Interest is payable whether or not the business has a good year.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 29%✓ 31.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.0% CAGR
Latest reported year was 4.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹1,278 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 39%✓ 41.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹55,673 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

34.5x

Fair

Fairly valued against the generic band

P/B Ratio

11.66x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹759.85

Profitable

Profitable on a per-share basis

ROE

32.5%

Strong

Strong capital efficiency

ROCE

41.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.60x

High

High leverage

Revenue Growth (YoY)

4.3%

Modest

Modest growth

Profit Growth (YoY)

17.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.00%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹1,278 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

29.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

27.7%

Good

Healthy core-business profitability

Net Margin

23.1%

Good

Strong bottom-line conversion

Current Ratio

2.55

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.06

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

26511.5 / 26483.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,347 Cr	₹5,847 Cr	₹6,407 Cr	₹6,927 Cr	+9.0%
EBITDA	₹1,359 Cr	₹1,700 Cr	₹1,974 Cr	₹2,173 Cr	+16.9%
EBITDA Margin	25.4%	29.1%	30.8%	31.4%	—
PAT (Net Profit)	₹949 Cr	₹1,201 Cr	₹1,414 Cr	₹1,552 Cr	+17.8%
EPS	₹446.78	₹565.28	₹665.62	₹730.36	+17.8%
ROE	29.8%	32.5%	33.4%	32.5%	—
ROCE	38.5%	42.3%	42.1%	41.9%	—
Total Debt	₹113 Cr	₹83 Cr	₹197 Cr	₹172 Cr	+15.0%
Free Cash Flow	₹859 Cr	₹1,164 Cr	₹959 Cr	₹1,278 Cr	+14.2%

🟢 Revenue has grown at 9.0% a year over 3 years.

🟢 EBITDA has grown at 16.9% a year over 3 years.

🟢 EBITDA Margin has risen from 25.4% to 31.4% over 3 years (+6.0 pts).

🟢 PAT (Net Profit) has grown at 17.8% a year over 3 years.

🟢 EPS has grown at 17.8% a year over 3 years.

🟢 ROE has risen from 29.8% to 32.5% over 3 years (+2.7 pts).

🟢 ROCE has risen from 38.5% to 41.9% over 3 years (+3.4 pts).

🔴 Total Debt has grown at 15.0% a year over 3 years.

🟢 Free Cash Flow has grown at 14.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,502 Cr

Total Liabilities

₹1,728 Cr

Cash & Equivalents

₹442 Cr

Operating Cash Flow

₹1,319 Cr

Capex

-₹41 Cr

Shareholding (proxy)

Institutional Holding

7.0%

Insider Holding

75.5%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹525

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

6 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹32,467.38

+23.9% vs CMP

Target Range

₹29,900 – ₹38,100

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

1 positive2 mixed3 general

Top 14 Pharma Stocks To Buy In India October 2026

Samco, 17 Oct

ABBOTINDIA Outlook for the Week

Equitypandit, 09 Oct

Abbott India (ABBOTINDIA.NS) Edges 0.37% Lower to ₹25,695 as Rangebound Trade Persists - RTH Profile

siam.in, 13 Oct

Only Three Days Left To Cash In On Abbott India's (NSE:ABBOTINDIA) Dividend

Simply Wall Street, 20 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

ABBOTINDIA Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Abbott India Shares Fall 2.03% to Rs 27,570; Among Top Losers on Nifty Midcap 150

Moneycontrol.com, 13 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑