Abbott India - Q1CY2013 results - Angel Broking

For 1QCY2013, Abbott India reported 11.6% yoy growth in topline at Rs. 420cr, 3.2% lower than our estimate of Rs. 433cr. EBITDA margin expanded by 313bp yoy primarily due to lower raw material prices. However, the adjusted net profit increased by just 17.1% yoy to Rs. 32cr inspite of a 56.4% yoy growth in EBITDA during 1QCY2013 due to exceptional item of Rs. 10cr in 1QCY2012 from writeback of depreciation and provision for expired goods. We expect the revenue to grow at a modest 12.2% revenue CAGR over CY2012-14E, while EBITDA margin would stabilize in the range of 12.0-12.5% going forward. Net profit is expected to post a 10.4% CAGR over the same period.

We maintain our Buy recommendation on the stock with a target price of Rs. 1,659 based on a target PE of 20x for CY2014E.

Source : Equity Bulls

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