Abbott India Limited Fundamental Analysis (NSE: ABBOTINDIA.NS)
Abbott India Limited Fundamental Analysis (NSE: ABBOTINDIA.NS)
Abbott India Limited (NSE: ABBOTINDIA.NS) shows moderate financial fundamentals with a PE ratio of 32.94, profit margin of 23.05%, and ROE of 37.93%. The company generates $70.0B in annual revenue with moderate year-over-year growth of 9.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ABBOTINDIA.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentABBOTINDIA.NS demonstrates superior asset utilization.
Valuation Score
WeakABBOTINDIA.NS trades at a premium to fair value.
Growth Score
ExcellentABBOTINDIA.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentABBOTINDIA.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentABBOTINDIA.NS achieves industry-leading margins.
Key Financial Metrics
Is ABBOTINDIA.NS Expensive or Cheap?
P/E Ratio
ABBOTINDIA.NS trades at 32.94 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ABBOTINDIA.NS's PEG of 2.95 indicates potential overvaluation.
Price to Book
The market values Abbott India Limited at 11.14 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.30 times EBITDA. This signals the market has high growth expectations.
How Well Does ABBOTINDIA.NS Make Money?
Net Profit Margin
For every $100 in sales, Abbott India Limited keeps $23.05 as profit after all expenses.
Operating Margin
Core operations generate 27.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $37.93 in profit for every $100 of shareholder equity.
ROA
Abbott India Limited generates $24.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Abbott India Limited generates limited operating cash flow of $5.22B, signaling weaker underlying cash strength.
Free Cash Flow
Abbott India Limited produces free cash flow of $5.05B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $237.78 in free cash annually.
FCF Yield
ABBOTINDIA.NS converts 0.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.38
vs 25 benchmark
ROA
Return on assets percentage
0.25
vs 25 benchmark
ROCE
Return on capital employed
0.38
vs 25 benchmark
How ABBOTINDIA.NS Stacks Against Its Sector Peers
| Metric | ABBOTINDIA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.94 | 31.29 | Neutral |
| ROE | 37.93% | 543.00% | Weak |
| Net Margin | 23.05% | 8965.00% | Weak |
| Debt/Equity | 0.04 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 2.55 | 5.79 | Strong Liquidity |
| ROA | 24.83% | -96.00% (disorted) | Strong |
ABBOTINDIA.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Abbott India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
56.60%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
138.54%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
61.59%
Industry Style: Defensive, Growth, Innovation
High Growth