Abbott India Limited (ABBOTINDIA) AI Stock Analysis

• Market Cap: ₹562.35B
• Dividend Yield: 1.68%
• Average Volume (3M): 628.00
• Price to Earnings (P/E): 41.0
• Beta (1Y): 0.57
• Revenue Growth: 10.69%
• EPS Growth: 17.46%
• Country: IN
• Employees: 3,814
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 189.00
• Shares Outstanding: 21,249,302
• 10 Day Avg. Volume: 806
• 30 Day Avg. Volume: 628
• PEG Ratio: 2.57
• Price to Book (P/B): 15.22
• Price to Sales (P/S): 10.05
• P/FCF Ratio: 67.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹32,150.00
• Price Target Upside: 14.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 735.98
• Revenue Forecast (FY): ₹69.51B

• Rating: 67 Neutral
• Price Target: ₹28,714.00 ▲(2.18% Upside)
• Action: Reiterated Date: 10/25/25
• Date: Action: Reiterated 10/25/25

Abbott India Limited's strong financial performance is the primary driver of its overall stock score, supported by robust profitability and a solid balance sheet. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Balance sheet strength

Low financial leverage and a strong equity base give Abbott India durable financial flexibility. This supports steady investment in salesforce and product support, cushions against industry shocks, enables opportunistic M&A or R&D spend, and underpins consistent capital allocation decisions over months.

Consistent free cash flow

Reliable free cash flow provides long-term funding for marketing, working capital, and shareholder returns without needing external financing. Even with some operating cash variability, steady FCF supports durable reinvestment in core brands and preserves strategic optionality through economic cycles.

Branded portfolio and therapy diversification

A portfolio focused on chronic therapy areas and established brands yields predictable demand, higher customer stickiness and pricing power. Diversification across gastroenterology, women’s health and metabolic care reduces reliance on any single product and supports stable revenue streams over months.

Negative Factors

Margin sensitivity to sourcing and promo costs

Margins can be structurally volatile because transfer pricing, supplier costs and required promotional spend materially affect gross and operating margins. Competitive pressure or higher input/marketing costs can compress profitability, requiring sustained margin management to preserve earnings trends.

Dependence on prescription channel and distribution

Heavy reliance on physician prescribing and multi-tier distribution exposes the business to channel disruptions, prescribing shifts, and competitive detailing. Sustaining growth requires continuous salesforce investment and regulatory compliance, which can raise fixed costs and constrain margin leveragability.

Moderate revenue growth rate

A mid-single-digit revenue growth rate suggests steady but modest top-line expansion. Over a multi-month horizon this can limit upside absent faster new product launches, market share gains or margin expansion, putting pressure on EPS and return acceleration without strategic initiatives.

Abbott India Limited Business Overview & Revenue Model

Company Description

Abbott India Limited operates as a pharmaceutical company in India. It offers pharmaceutical products for various therapeutic areas, such as women's health, gastroenterology, metabolic, central nervous system, pain management, pre-term labor, vitamins, insomnia, vaccines, consumer health, etc. The company was formerly known as Knoll Pharmaceuticals Limited and changed its name to Abbott India Limited in July 2002. Abbott India Limited was incorporated in 1944 and is headquartered in Mumbai, India. Abbott India Limited is a subsidiary of Abbott Capital India Limited.

How the Company Makes Money

Abbott India makes money primarily by selling branded pharmaceutical formulations and healthcare products in India. Its core revenue model is based on (1) domestic sales of prescription-led brands across multiple therapy areas, where demand is driven by physician prescriptions and fulfilled through a distribution network of stockists/wholesalers and retail pharmacies, and (2) sales of certain consumer-facing healthcare products sold through pharmacies and other trade channels. Earnings are supported by a portfolio of established brands (which tend to provide repeat, chronic-use demand in areas like metabolic disorders and women’s health) as well as products for acute conditions (e.g., anti-infectives, pain management). Where Abbott India markets products that are owned, manufactured, or supplied within the broader Abbott ecosystem or by third parties, margins are influenced by transfer pricing/sourcing costs, product mix, and the company’s spending on salesforce promotion, medical marketing, and distribution. Specific details on named partnerships, product-level revenue split, or segment-wise revenue contributions are null.

Abbott India Limited Financial Statement Overview

Summary

Abbott India Limited demonstrates strong financial health across income, balance sheet, and cash flow verticals. The company exhibits robust profitability, efficient asset utilization, and solid cash flow management, positioning it well for continued growth. The balance sheet is a particular strength due to low leverage and a solid equity foundation.

Income Statement

Abbott India Limited showcases strong profitability with consistent revenue growth and robust margins. The gross profit margin has remained healthy, reflecting efficient cost management. Net profit margin has improved significantly, indicating strong bottom-line performance. EBIT and EBITDA margins also reflect operational efficiency, contributing to the positive outlook in this vertical.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is strong, showcasing a substantial proportion of assets financed by equity, enhancing financial stability. The return on equity remains impressive, reflecting effective utilization of shareholder funds.

Cash Flow

Abbott India exhibits strong cash flow management with consistent free cash flow generation. While there is a slight decline in operating cash flow, the company maintains a healthy free cash flow to net income ratio, indicating efficient cash conversion. The free cash flow growth rate, although slightly volatile, remains positive, supporting future investments and shareholder returns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	67.14B	64.09B	58.47B	53.47B	49.10B	43.08B
Gross Profit	30.87B	29.12B	26.14B	23.61B	22.42B	19.07B
EBITDA	21.03B	19.70B	16.98B	13.56B	11.61B	9.98B
Net Income	15.09B	14.14B	12.01B	9.49B	7.99B	6.91B
Balance Sheet
Total Assets	56.94B	59.17B	51.93B	45.56B	42.24B	38.40B
Cash, Cash Equivalents and Short-Term Investments	23.42B	31.13B	21.18B	19.22B	27.35B	23.98B
Total Debt	1.82B	1.97B	832.30M	1.13B	1.52B	1.53B
Total Liabilities	16.84B	16.84B	14.95B	13.67B	14.04B	12.38B
Stockholders Equity	40.11B	42.33B	36.99B	31.89B	28.20B	26.02B
Cash Flow
Free Cash Flow	5.05B	9.59B	11.64B	8.59B	9.04B	7.03B
Operating Cash Flow	5.22B	10.12B	12.13B	8.93B	9.48B	7.27B
Investing Cash Flow	5.48B	1.82B	-4.16B	-1.48B	-3.96B	-718.20M
Financing Cash Flow	-10.40B	-9.25B	-7.45B	-6.39B	-6.37B	-5.82B

Abbott India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28101.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ABBOTINDIA, the sentiment is Negative. The current price of 28101.15 is above the 20-day moving average (MA) of 26757.91, above the 50-day MA of 27277.26, and below the 200-day MA of 30059.57, indicating a bearish trend. The MACD of -67.26 indicates Negative momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 27.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ABBOTINDIA.

Abbott India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	74 Outperform	₹747.72B	18.87	―	0.33%	7.33%	-3.79%
LUPIN	72 Outperform	₹1.05T	20.49	―	0.57%	15.49%	64.37%
ZYDUSLIFE	72 Outperform	₹895.45B	22.07	―	1.19%	14.01%	14.62%
ABBOTINDIA	67 Neutral	₹562.35B	41.01	―	1.68%	10.69%	17.46%
BIOCON	63 Neutral	₹611.78B	91.56	―	0.12%	10.62%	-66.88%
GLAXO	63 Neutral	₹412.27B	35.44	―	2.16%	4.17%	41.51%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%