 "Abbott India share rises 3% as JPMorgan ups target to Rs 31,500; details")
Abbott India share price: Shares of Abbott India, the most expensive pharmaceutical stock in the Indian market, rose up to 2.72 per cent to hit an intraday high of Rs 28,900 per share on BSE, on Thursday, December 19, 2024.
The surge in Abbott India share price followed reports that JPMorgan, a New York-based financial services firm, raised its target price to Rs 31,500, up from Rs 30,000, signaling a potential upside of 12 per cent from the December 18 closing price of Rs 28,134.
A report by Nomura dated December 11, 2024, highlighted that the Indian pharmaceutical market (IPM) achieved year-on-year (Y-o-Y) sales growth of 10.7 per cent in November 2024, the highest in four months according to IQVIA data.
The growth came off a relatively low base, as November 2023 recorded only a 3.5 per cent Y-o-Y increase. Over the two years from November 2022 to November 2024, the compound annual growth rate (CAGR) stood at 7 per cent, which aligns with the underlying trend when accounting for seasonal fluctuations.
In November 2024, the average growth rates for the trailing three months (T3M) and twelve months (T12M) were 6.9 per cent and 7.2 per cent, respectively. The primary driver of growth, analysts believe, was price increases, contributing 4-5 per cent, which highlighted sluggish volume growth in branded generics.
The slower growth was further corroborated by contract manufacturers, who reported minimal order book expansions in recent months. Market share gains by trade generics, unbranded generics, and private-label medicines also affected the performance of branded generics. For instance, Medplus saw major volume growth in private-label products after launching competitively priced offerings.
More From This Section
The Nomura report also pointed out a potential risk to pharmaceutical valuations in the short-term due to rising input costs. Higher costs could impact earnings before interest, tax, depreciation and amortisation (Ebitda) margins, thereby slowing earnings growth, particularly in the context of already moderate market growth.
Abbott India financial performance
Abbott India’s net profit rose 14.6 per cent Y-o-Y to Rs 358.6 crore in the September quarter of financial year 2025 (Q2FY25), as opposed to Rs 312.9 crore in the September quarter of financial year 2024 (Q2FY24).
The company’s sales rose 9.3 per cent to Rs 1,632.7 crore in the Q2FY25, from Rs 1,494.1 crore in Q2FY24.
About Abbott India
Abbott India is among the leading multinational pharmaceutical companies established in 1944, operates as part of the global Abbott Laboratories group. With a presence in over 160 countries and a legacy spanning more than 130 years, Abbott India is a major player in the pharmaceutical sector.
The company offers a diverse portfolio of over 125 products across various therapeutic areas, including women's health, gastroenterology, central nervous system (CNS) disorders, metabolics, pain management, insomnia, nutritional supplements, vitamins, vaccines, and consumer health.
Its top 15 brands are leaders in their respective segments, accounting for over 80 per cent of the company's core business.
Abbott India is also present in Sri Lanka, Nepal, Maldives, and Bhutan markets. The company boasts a robust distribution network, comprising more than 8,600 stockists and over 60 lakh retailers.
The market capitalisation of Abbott India is Rs 61,327.29 crore, according to BSE. The company falls under the BSE 200 category.
At 1:36 PM, Abbott India shares were trading 2.67 per cent higher at Rs 28,884.50. In comparison, BSE Sensex was trading 1.17 per cent lower at 79,244.84 levels.