BSE:500488

Stock Analysis Report

Executive Summary

Abbott India Limited operates as a pharmaceutical company in India.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Abbott India's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

500488

1.4%

IN Pharmaceuticals

1.4%

IN Market


1 Year Return

49.5%

500488

-20.0%

IN Pharmaceuticals

2.3%

IN Market

Return vs Industry: 500488 exceeded the Indian Pharmaceuticals industry which returned -20% over the past year.

Return vs Market: 500488 exceeded the Indian Market which returned 2.3% over the past year.


Shareholder returns

500488IndustryMarket
7 Day-0.5%1.4%1.4%
30 Day11.2%-7.1%2.7%
90 Day27.9%-5.2%-1.4%
1 Year50.6%49.5%-19.3%-20.0%4.3%2.3%
3 Year137.0%131.3%-27.3%-28.8%20.9%14.9%
5 Year268.5%254.5%-11.9%-14.6%41.2%28.2%

Price Volatility Vs. Market

How volatile is Abbott India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

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Valuation

Is Abbott India undervalued compared to its fair value and its price relative to the market?

47.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 500488 (₹10935.3) is trading above our estimate of fair value (₹4019.93)

Significantly Undervalued: 500488 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500488 is poor value based on its PE Ratio (47.9x) compared to the Pharmaceuticals industry average (15.6x).

PE vs Market: 500488 is poor value based on its PE Ratio (47.9x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: 500488 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 500488 is overvalued based on its PB Ratio (11.6x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Abbott India forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500488's forecast earnings growth (14.9% per year) is above the savings rate (7.6%).

Earnings vs Market: 500488's earnings (14.9% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: 500488's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500488's revenue (11.2% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: 500488's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 500488's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Abbott India performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500488's earnings have grown by 18.1% per year over the past 5 years.

Accelerating Growth: 500488's earnings growth over the past year (11.4%) is below its 5-year average (18.1% per year).

Earnings vs Industry: 500488 earnings growth over the past year (11.4%) underperformed the Pharmaceuticals industry 14.4%.


Return on Equity

High ROE: 500488's Return on Equity (24.1%) is considered high.


Return on Assets

ROA vs Industry: 500488 has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: 500488 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Abbott India's financial position?


Financial Position Analysis

Short Term Liabilities: 500488's short term assets (₹27.6B) exceeds its short term liabilities (₹8.6B)

Long Term Liabilities: 500488's short term assets (27.6B) exceeds its long term liabilities (754.3M)


Debt to Equity History and Analysis

Debt Level: 500488 is debt free.

Reducing Debt: 500488 has not had any debt for past 5 years.

Debt Coverage: 500488 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 500488 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500488 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 500488's debt is covered by short term assets.


Next Steps

Dividend

What is Abbott India's current dividend yield, its reliability and sustainability?

0.59%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500488's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 500488's dividend (0.59%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).

Stable Dividend: 500488's dividends per share have been stable in the past 10 years.

Growing Dividend: 500488's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.9%), 500488's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Abbott India's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Ambati Venu (50yo)

3.1yrs

Tenure

₹65,075,000

Compensation

Mr. Ambati Venu has been Managing Director at Abbott India Limited since September 29, 2016. Mr. Venu served as Executive Vice President and General Manager of Sales Eastern Region of Glaxosmithkline Consu ...


CEO Compensation Analysis

Compensation vs. Market: Ambati's total compensation ($USD910.33K) is about average for companies of similar size in the Indian market ($USD822.55K).

Compensation vs Earnings: Ambati's compensation has been consistent with company performance over the past year.


Board Age and Tenure

1.8yrs

Average Tenure

60yo

Average Age

Experienced Board: 500488's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Ambati Venu (50yo)

    MD & Executive Director

    • Tenure: 3.1yrs
    • Compensation: ₹65.08m
  • Rajiv Sonalker (60yo)

    CFO, Group Finance Director & Whole-time Director

    • Tenure: 2.2yrs
    • Compensation: ₹30.48m
  • Krupa Anandpara

    Associate Director - Secretarial

    • Tenure: 0yrs
    • Compensation: ₹6.83m
  • Mike Warmuth (56yo)

    Executive Vice President of Pharmaceuticals Division

    • Tenure: 0yrs
  • Keya Phatnani

    Associate Director of Human Resources

    • Tenure: 0yrs

Board Members

  • Ambati Venu (50yo)

    MD & Executive Director

    • Tenure: 3.1yrs
    • Compensation: ₹65.08m
  • Rajiv Sonalker (60yo)

    CFO, Group Finance Director & Whole-time Director

    • Tenure: 2.2yrs
    • Compensation: ₹30.48m
  • Munir Shaikh (76yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: ₹1.50m
  • Kaiyomarz Marfatia (63yo)

    Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: ₹15.90m
  • Sudarshan Jain (64yo)

    Independent Director

    • Tenure: 0.5yrs
    • Compensation: ₹5.94m
  • Anisha Motwani (56yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: ₹1.30m
  • Krishna Sahni (72yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: ₹1.45m
  • Mark Murphy (51yo)

    Non-Executive Director

    • Tenure: 0.5yrs
  • Jawed Zia (56yo)

    Non-Executive Director

    • Tenure: 1.3yrs

Company Information

Abbott India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Abbott India Limited
  • Ticker: 500488
  • Exchange: BSE
  • Founded: 1944
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹231.694b
  • Shares outstanding: 21.25m
  • Website: https://www.abbott.co.in

Number of Employees


Location

  • Abbott India Limited
  • Godrej BKC
  • 16th Floor, Plot C- 68, “G” Block
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500488BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1999
ABBOTINDIANSEI (National Stock Exchange of India)YesEquity SharesININRSep 1999

Biography

Abbott India Limited operates as a pharmaceutical company in India. It offers pharmaceutical products for various therapeutic areas, such as women’s health, gastroenterology, metabolics, central nervous sy ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:35
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.