Abbott India (ABBOTINDIA)

FairStock Score: 63/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At first glance, Abbott India is the kind of business I admire: high returns on equity and capital, negligible debt, and consistent cash generation. With ROE at 36% and ROCE at 46.25%, it earns far more than its cost of capital, and a debt-equity ratio of 0.05 means the balance sheet is a fortress. Free cash flow of ₹1,194 Cr supports the quality. The latest quarter shows net profit of ₹376 Cr on sales of ₹1,724 Cr, roughly a 22% margin. Promoter holding at 74.99% is a good sign. But Graham taught me to pay a fair price for excellence. Here the price is the problem. At ₹25,422, the P/E is 36.99 times earnings and P/B is 12.76 times book. The Graham Number of ₹5,676.58 and DCF value of ₹6,988.47 are far below the market price, giving a margin of safety of minus 367%. In other words, I am paying for years of perfect execution. Sales growth of 9.31% and profit growth of 14.21% are solid but not spectacular enough to justify a PEG of 4.59. The Piotroski score of 8/9 and Altman Z of 8.60 tell me the company is operationally sound; the concern is entirely price. This is a wonderful stalwart, but I would wait for a much lower entry point or a meaningful improvement in growth before putting new money to work.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer