Abbott India Ltd.
NSE: ABBOTINDIAAbbott India Ltd.: A 30-second snapshot
Abbott India (ABBOTINDIA) is a branded domestic-pharma company trading at ₹26,840, down 11.2% over the past year and 27.5% below its 52-week high, while carrying a trailing PE of 36.7 against ROE of 34.5% — the highest among the six ranked sector peers. Debt-to-equity of 3.60 is above typical levels for the branded-pharma segment and the trend is rising. The forward PE of 29.5 implies the market is anticipating earnings acceleration relative to the 5-year CAGR of 7.6%.
P/E
36.7
Forward P/E
29.5
ROE
+34.5%
Debt / Equity
3.60
Profit Margin
+22.4%
Div. Yield
+1.9%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
62/100
News
4 headlines · 1 positive · 1 negative
Abbott India Ltd stock (INE358A01014): Q3 FY26 margin pressure keeps investors cautious - AD HOC NEWS
AD HOC NEWS
Massive Rs 525 dividend alert! This company in Q4 results broke its own payout record of Rs 475 - Business Today
Business Today
Abbott India Limited Appoints Swati Pathak as Associate Director - Operations, Effective June 1, 202626 - marketscreener.com
marketscreener.com
Bandhan Bank, GE Shipping, MOFSL among 5 positional stocks picks for 15-25% upside - Business Today
Business Today
Recent context
- ·A Q4 FY26 dividend of ₹525 per share — a record payout exceeding the previous high of ₹475 — was announced in May 2026, signalling strong cash generation for the period.
- ·Q3 FY26 margin pressure was reported in late May 2026, with coverage noting that investors remain cautious about near-term profitability trends.
- ·Abbott India appointed Swati Pathak as Associate Director — Operations, effective 1 June 2026, a routine leadership change with no disclosed strategic implications.
Strengths
- +ROE of 34.5% is the highest among six ranked Pharma peers (next best: SUNPHARMA at 14.7%), indicating superior capital efficiency over the comparison set.
- +FCF was positive in 4 of 4 measured years, and the consistency score of 65 reflects a business that has reliably converted earnings to cash.
- +Profit margin of 22.4% is well above single-digit margins typical of volume-generics peers in the sector data, pointing to pricing power in the branded segment.
- +Q4 FY26 dividend of ₹525 per share broke the company's prior payout record of ₹475, reflecting management's confidence in near-term cash generation.
Weaknesses
- −Debt-to-equity of 3.60 is elevated relative to the branded-pharma segment, with the trend flagged as rising — an unusual profile for a company with strong FCF that may warrant monitoring for capital allocation shifts.
- −The stock has declined 11.2% over 12 months and sits 27.5% below its 52-week high, trading 5.8% below the 200-DMA of ₹28,489 without a sustained long-term moving-average reclaim.
- −Five-year revenue CAGR of 6.5% and earnings CAGR of 7.6% are below the growth rate implied by a trailing PE of 36.7; the forward PE of 29.5 prices in execution on earnings expansion that history does not yet confirm.
- −Q3 FY26 margin pressure was cited in recent news as keeping investors cautious, suggesting near-term earnings visibility may be limited.
Open questions
- ?Does the rising debt-to-equity trend reflect a deliberate capital structure shift by the parent (Abbott Laboratories) or an anomaly in how inter-company payables are classified, and how has this evolved over 5 years?
- ?Is the Q3 FY26 margin compression a transient input-cost or product-mix issue, or does it indicate a structural shift in the pricing environment for Abbott India's key therapeutic categories?
- ?Given that ROE ranks first among peers yet the stock has underperformed over 12 months, what factor — valuation multiple compression, sector rotation, or earnings-growth deceleration — best explains the divergence?
- ?How does Abbott India's 6.5% five-year revenue CAGR compare to the underlying growth rate of the Indian pharmaceutical market, and what does that imply about its market-share trajectory?
Peer comparison: Pharma
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ABBOTINDIA | Abbott India Ltd.You're viewing | 36.7 | +34.5% | 59 |
| Industry avg | across 5 peers | 43.2 | +14.8% | 36 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 37.5 | +14.7% | 59 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 60.1 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 63.5 | +14.3% | 37 |
| CIPLA | Cipla Ltd. | 28.9 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 25.6 | +11.8% | 17 |
Technical state
Current price
₹26,840.00
SMA 50
₹26,409.80
SMA 200
₹28,488.58
RSI (14)
48.1 (neutral)
From 52w high
-27.5%
1Y return
-11.2%
3M return
+1.8%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumDebt-to-equity of 3.60 is elevated for a branded domestic-pharma company, and the trend is flagged as rising; most pharma peers in the sector data carry significantly lower leverage, adding incremental balance-sheet risk if earnings growth does not accelerate.
- mediumPrice of ₹26,840 sits 5.8% below the 200-DMA of ₹28,489 and is down 11.18% over the past 12 months; the 52-week drawdown of 27.5% indicates sustained price erosion from the annual peak with no confirmed long-term moving-average reclaim.
- lowFive-year revenue CAGR of 6.5% and earnings CAGR of 7.6% are modest relative to a trailing PE of 36.7; the forward PE of 29.5 implies a material step-up in earnings that is not yet reflected in the historical growth rate.
- lowAnalyst consensus rating is null despite 8 analysts being counted; no consensus mean rating is available, limiting the view of sell-side positioning for this stock.
Cross-section contradictions
- ROE of 34.5% ranks first among 6 sector peers and FCF was positive in 4 of 4 measured years, yet the stock has declined 11.2% over 12 months and sits 27.5% below its 52-week high — the price action is not explained by any material negative news in the current data sample.
- RSI of 48.2 (neutral) and price 1.6% above the 50-DMA suggest a mild near-term recovery, while the stock simultaneously trades 5.8% below the 200-DMA; the two readings reflect a short-term stabilisation within a longer-term price downtrend.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days