Abbott India operates in various therapeutic areas such as women’s health, gastroenterology, central nervous system, metabolics, multi-specialty, vaccines, consumer health, etc.
It is a net cash company with low working capital requirements. The company has low capex (capital expenditure) as most of its products are made by third-party manufacturers. Given the continued strong performance, healthy return ratios, and strong free cash flow or FCF/EBITDA, analysts rate Abbott as one of the best companies amongt multinational peers.
After attaining a leadership position in top 10 brands (no 1 position in 8 brands and no 2 in two) in India, the management is set to build next set to 10 brands which should drive the growth. The management also indicated to enter new therapy areas like Menopause and liver disease, etc to tap unmet needs, which should jack up the growth, analysts at IDBI Capital had said in a company update dated August 27.