Trending stocks

Abbott India is an attractive growth stock: revenue grew 14.4% and EBITDA 14.2% annually over the last three years

04-06-2014 • About Abbott India ($ABBOTINDIA) • By InTwits

Have you thought about Abbott India as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.

Growth story


Abbott India showed fast growth in the last financial year. The company's revenue surged on 27.3% in FY2014. At the same time Abbott India well managed its profitability and also showed EBITDA growth of 23.1% for the same period.

In the longer period Abbott India showed fast revenue growth of 14.4% from FY2011 to FY2014 annually. EBITDA surged on 14.2% from FY2011 to FY2014 annually.

Abbott India ($ABBOTINDIA) financials for the last 5 years

mln. INR FY2010 FY2011 FY2012 FY2013 FY2014
Revenue27,80514,90216,13117,52722,313
Revenue growth, %-46.4%8.2%8.7%27.3%
SG&A, %
EBITDA1,1761,8002,0432,1802,683
EBITDA growth, %53.1%13.5%6.7%23.1%
EBITDA margin, %4.23%12.1%12.7%12.4%12.0%
Net Income7531,2041,4471,6010
Net Income margin, % 2.71%8.08%8.97%9.13%0%
 
CAPEX015517300
CAPEX/Revenue, %0%1.04%1.07%0%0%
Debt00000
Cash2,1262073,2453,6814,602
Net Debt/EBITDA-1.8x-0.1x-1.6x-1.7x-1.7x
 
ROIC, %33.5%36.0%29.6%26.9%30.5%
ROE, %24.4%27.0%24.3%22.0%0.0%

Profitability and return on investment


Despite revenue growth EBITDA margin declined slightly from 12.4% in FY2013 to 12% in FY2014. If we look for the longer period Abbott India showed small EBITDA margin decline of 0.100 pp from 12.1% in FY2011 to 12% in FY2014.

We call Abbott India an attractive growth stock as together with the growth it delivers high ROIC at 30.5%. During the last three years it dropped - it was 36.0% in FY2011. It's average level of ROIC for the last three years was 29.0%.

Net Income margin dropped on 9.10 pp from 9.10% to 0% in FY2014. If we look for the longer period the company showed big decline in Net Income margin of 8.10 pp from 8.10% in FY2011 to 0% in FY2014.

Abbott India operates at ROE of 0%. For the last three years the average ROE was 15.4%.

Capital expenditures (CAPEX)


The company's CAPEX/Revenue was 0% in FY2014. The company showed big decline in CAPEX/Revenue of 1.04 pp from 1.04% in FY2011 to 0% in FY2014.

Leverage (Debt)


Having such a fast growth profile the company keeps negative net debt at -1.7x Net Debt/EBITDA. In the longer period the company's leverage surged on 1.60x from -0.11x in FY2011 to -1.71x in FY2014.

Peers in Pharmaceuticals


Below you can find Abbott India benchmarking vs. other companies in Pharmaceuticals industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top 5
Granules India ($GRANULES)-68.4%37.6%16.9%43.4%
Torrent Pharmaceuticals ($TORNTPHARM)-63.5%22.7%17.7%32.2%
Alembic Pharmaceuticals ($APLLTD)-52.0%22.0%3.7%22.6%
Kopran ($KOPRAN)-52.9%7.3%25.8%21.0%
Glenmark Pharmaceuticals ($GLENMARK)-64.0%36.3%24.7%19.8%
 
Median (21 companies)-43.9%13.9%16.3%12.6%
Abbott India ($ABBOTINDIA)-46.4%8.2%8.7%27.3%


Top companies by Gross margin, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top
Dr.Reddy'S Laboratories ($DRREDDY)51.7%52.1%57.4%
Omega Laboratories ($OMEGALAB)0.0%0.0%0.0%
 
Median (2 companies)55.5%46.9%26.1%28.7%


Top companies by EBITDA margin, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top 5
Divi'S Laboratories ($DIVISLAB)11.2%38.1%37.2%38.2%40.2%
Dr.Reddy'S Laboratories ($DRREDDY)3.0%21.7%25.8%22.9%25.1%
Torrent Pharmaceuticals ($TORNTPHARM)7.2%18.3%20.2%22.8%23.7%
Jubilant Life Sciences Limited ($JUBILANT)10.2%17.1%20.6%21.8%19.2%
Alembic Pharmaceuticals ($APLLTD)13.4%15.4%16.4%19.2%
 
Median (20 companies)7.1%16.6%13.5%13.4%15.0%
Abbott India ($ABBOTINDIA)4.2%12.1%12.7%12.4%12.0%


Top companies by CAPEX/Revenue, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top 5
Granules India ($GRANULES)0.9%5.3%8.8%15.2%24.3%
Torrent Pharmaceuticals ($TORNTPHARM)2.6%12.5%6.6%9.6%9.9%
Divi'S Laboratories ($DIVISLAB)1.6%12.4%15.6%15.9%9.8%
Unichem Laboratories ($UNICHEMLAB)3.2%11.0%12.9%9.1%9.2%
Dr.Reddy'S Laboratories ($DRREDDY)4.5%15.9%9.3%6.5%8.2%
 
Median (17 companies)2.4%5.2%6.1%5.8%5.8%


Top companies by ROIC, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top 5
Alembic Pharmaceuticals ($APLLTD)27.5%29.1%41.5%
Torrent Pharmaceuticals ($TORNTPHARM)26.5%22.3%26.4%30.5%33.2%
Divi'S Laboratories ($DIVISLAB)24.9%25.6%30.6%30.4%32.3%
Ngl Fine-Chem ($NGLFINE)23.5%19.0%9.3%17.9%22.4%
Dr.Reddy'S Laboratories ($DRREDDY)3.4%18.6%26.0%22.0%21.5%
 
Median (32 companies)15.3%14.4%11.8%13.6%14.7%
Abbott India ($ABBOTINDIA)33.5%36.0%29.6%26.9%30.5%


Top companies by Net Debt / EBITDA

 FY2010 FY2011 FY2012 FY2013 FY2014
Top 5
Jubilant Life Sciences Limited ($JUBILANT)4.0x5.3x4.0x3.5x3.5x
Kopran ($KOPRAN)6.6x6.0x4.5x3.0x3.0x
Granules India ($GRANULES)2.3x2.0x2.2x2.4x2.7x
Neuland Laboratories ($NEULANDLAB)7.9x4.9x4.2x3.5x2.6x
Glenmark Pharmaceuticals ($GLENMARK)2.7x3.2x2.7x2.1x2.2x
 
Median (28 companies)1.5x1.2x1.4x1.2x0.3x
Abbott India ($ABBOTINDIA)-1.8x-0.1x-1.6x-1.7x-1.7x


Similar news

04-06-2014 Pidilite Industries's fundamentals demonstrate strong growth profile

04-06-2014 Amara Raja Batteries demonstrated fast growth over the last few years. Will the growth continue?

04-06-2014 Insecticides (India) demonstrates profitable growth

04-06-2014 Looking for growth stocks? Pay attention to Fiem Industries

03-06-2014 Jsw Steel's growth is outstanding: revenue grew 28.6% and EBITDA 23.4% annually over the last three years