Abbott India's Q2 profit climbs on strong sales

Abbott India

09/11/2023 08:29

BENGALURU, Nov 9 (Reuters) - Abbott India  ABOT.NS , the local unit of U.S. healthcare firm Abbott Laboratories
 ABT.N , reported a 17.7% rise in second-quarter profit on Thursday, driven by strong sales in its mainstay pharmaceuticals
segment.
    Profit for the company, which makes pain-reliever ibuprofen under the brand name Brufen, rose to 3.13 billion rupees
($37.6 million) in the three months to Sept. 30 from a year earlier.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3CA14L
    
    KEY CONTEXT
    Waning price erosion in the U.S. market, which accounts for a significant share of Indian generic drug-makers' revenue,
led to an 8.3% rise in Abbott's revenue, driving up profit.
    Peers Cipla  CIPL.NS  and Dr Reddy's  REDY.NS  beat analysts' profit estimates while Gland Pharma  GLAD.NS  missed
profit estimates.
    Still, Abbott was hurt by production halts in Goa, where it has one of its two India plants, after customer complaints
led to a voluntary recall of its antacid syrup starting August and left the company embroiled in a tussle with regulators
in the state.
    
    PEER COMPARISON
                                 Valuation (next 12       Estimates (next 12    Analysts' sentiment                
                                       months)                 months)                                             
                       RIC     PE          EV/EBITDA    Revenue      profit     Mean      # of      Stock to       Div
                                                        growth       growth     rating*   analysts  price          yield
                                                                                                    target**       (%)
 Abbott India Ltd      ABOT.N       43.18        31.48     12.63       17.51    Buy              7      1.05           0.74
                       S                                                                                           
 Gland Pharma Ltd      GLAD.N       25.72        16.30     25.47       16.49    Buy             16      1.00       -
                       S                                                                                           
 Cipla Ltd             CIPL.N       24.21        14.42     10.53       17.96    Buy             35      1.00           0.68
                       S                                                                                           
 Dr Reddy's            REDY.N       17.72        10.95     8.03        7.18     Hold            37      0.97           0.73
 Laboratories Ltd      S                                                                                           
    * 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
    
    JULY-SEPT STOCK PERFORMANCE
    
    
    -- All data from LSEG
    -- $1 = 83.2540 Indian rupees

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 (Reporting by Varun Vyas in Bengaluru; Editing by Janane Venkatraman)
 ((varunvyas.hebbalalu@thomsonreuters.com;))