ABBOTINDIA

Abbott India’s (Abbott) revenue grew 12% YoY ahead of most MNCs (avg. growth of 10% YoY and IPM growth of 8% YoY in Q4FY25). Abbott’s growth was aided by healthy traction in its own brands along with key brands of Novo Nordisk like Rybelsus and Ryzodeg. Cost synergies helped it post strong 380bps YoY EBITDA margin expansion. Timely price hikes on non-NLEM portfolio along with operating leverage may help it further improve margins in coming year. Outlook We remain positive on Abbott given its exclusive focus on domestic formulations, strong return profile (RoCE and RoE of 36% each in FY25) and cash rich balance sheet (INR 16.3bn at the end FY25). Maintain BUY with a revised TP of INR 35,750, based on 40x FY27E EPS.