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ABBOTINDIA Abbott India News Story

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Abbott India's profit climbs on healthy pharmaceutical demand

Aug 12 (Reuters) - Drugmaker Abbott India ABOT.NS reported an 11.5% rise in first-quarter profit on Tuesday, driven by healthy sales in its mainstay pharmaceuticals segment.

The company, known for its PediaSure nutrition drink, reported a profit of 3.66 billion rupees ($41.77 million) for the quarter ended June 30, up from 3.28 billion rupees a year ago.

Revenue from operations climbed 11.6% to 17.38 billion rupees.

KEY CONTEXT

Chronic therapies and price-led gains are expected to drive nearly 10% growth in India's pharmaceutical market in the June quarter, analysts said. Abbott, which has a strong presence in chronic treatments such as thyroid and diabetes drugs, is seen leading growth among multinational peers.

Peer JB Chemicals & Pharmaceuticals JBCH.NS last month posted an 8.9% higher quarterly profit, led by healthy domestic demand for its drugs.

PEER COMPARISON

Valuation (next 12 months)Estimates (next 12 months)Analysts' sentiment
RICPEEV/EBITDARevenue growth(%)Profit growth(%)Mean rating*# of analystsStock to price target**Div yield(%)
Abbott IndiaABOT.NS43.5933.537.5612.31Strong Buy60.931.46
GlaxoSmithKline PharmaceuticalsGLAX.NS42.2931.478.9211.72Buy40.871.54
Torrent PharmaceuticalsTORP.NS46.2627.1512.6125.39Buy290.930.91
J B Chemicals and PharmaceuticalsJBCH.NS31.6520.4812.2318.57Buy120.860.74
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT APRIL-JUNE STOCK PERFORMANCE -- All data from LSEG -- $1 = 87.6162 Indian rupees APRIL-JUNE STOCK PERFORMANCE https://reut.rs/4lkXrp4 (Reporting by Aleef Jahan in Bengaluru; Editing by Ronojoy Mazumdar) ((aleefjahan.cs@thomsonreuters.com))

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