Abbott India posts Q2 profit rise on strong demand, price hikes

Abbott India

07/11/2024 09:24

Nov 7 (Reuters) - Drugmaker Abbott India  ABOT.NS  reported a rise in second-quarter profit on
Thursday, helped by strong demand for its gastrointestinal and anti-infective medications.
    The company, which makes the antacid Digene, reported a profit of 3.59 billion rupees ($42.6 million)
for the quarter ended Sept. 30, up nearly 15% from last year.
    Revenue from operations climbed 9.3% to 16.33 billion rupees.
    For further highlights, click  urn:newsml:reuters.com:*:nFWN3ME0AD

    KEY CONTEXT
    Drugmakers such as Abbott India and rival GlaxoSmithKline Pharmaceuticals  GLAX.NS , who earn most of
their revenue from India, have hiked prices of certain drugs not included in the Indian government's
price-capped 'essential medicines list' to boost their earnings, analysts have said.
    Abbott India continued to benefit from anti-infectives and medications for gastrointestinal conditions,
the company said in its latest annual report.
    Last week, rival GlaxoSmithKline Pharma reported higher second-quarter profit, boosted by demand for
generic drugs and vaccines.
    
    PEER COMPARISON
    
                                              Estimates (next 12         Analysts' sentiment        
                                                   months)                                          
                   RIC        PE     EV/EBI  Revenue     Profit    Mean      # of     Stock to      Div
                                     TDA     growth (%)  growth    rating*   analyst  price         yield
                                                         (%)                 s        target**      (%)
 Abbott India Ltd   ABOT.NS   42.94   33.38     9.56      12.79    Strong          4      0.97         1.41
                                                                   Buy                              
 GlaxoSmithKline    GLAX.NS   47.93   35.40     8.96      33.60    Buy             4      0.90         1.22
 Pharmaceuticals                                                                                    
 Ltd                                                                                                
 Pfizer Ltd         PFIZ.NS   33.98   26.54     7.92      16.77    Buy             3      0.85         0.66
 Aurobindo Pharma   ARBN.NS   18.80   10.86     9.61      17.80    Buy            26      0.89         0.32
 Ltd                                                                                                
 * 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 TO SEPTEMBER STOCK PERFORMANCE   
 -- All data from LSEG
 -- $1 = 84.3475 Indian rupees

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JULY TO SEPTEMBER STOCK PERFORMANCE    https://tmsnrt.rs/3O0tqwt
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 (Reporting by Kashish Tandon in Bengaluru; Editing by Varun H K)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))