Abbott India witnessed a nearly 3% dip in its shares during early trades on November 13 following the pharmaceutical major’s announcement of a 17% year-on-year increase in net profit for Q2FY24. The results, disclosed on November 10, led the stock to trade at Rs 23,197.05 on the NSE at 11:15 am on November 13.
As per a regulatory filing, Abbott India posted an 8.31% rise in net sales on a year-on-year basis, reaching Rs 14,914 crore in the quarter ending September 2023. The quarterly net profit also saw a significant uptick of 17.86% during the same period, totaling Rs 312.94 crore. Earnings before interest, taxation, depreciation, and amortization (EBITDA) for September 2023 reached Rs 436.39 crore, reflecting a 15.81% increase from the previous fiscal.
CLSA analysts downgraded the stock from Buy to Outperform, while simultaneously raising the target price to Rs 27,500 per share. According to the brokerage, the growth will be fueled by top brands and new launches, ensuring the sustainability of double-digit revenue growth.
Abbott India, the Indian subsidiary of Abbott Laboratories, specializes in the manufacturing of therapeutic drugs for women’s health, gastroenterology, cardiology, metabolic disorders, and primary care.
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