Saturday, March 2, 2013

ABBOTT INDIA - BUY




Abbot India - a 75 % subsidiary of Illinois based   Abbott Laboratories -operating in pharmaceutical, nutritional and diagnostic segments in India.Company is one of the best MNC pharma company currently available at attractive valuation. In past few years ,parent company is very aggressive in India to expand its business.As part of its global integration in 2012 Abbot India merged Solvay India with itself.Abbot group operating in India through three units viz  Abbott India, Abbott Healthcare and Abbott True Care.In these days , many MNC pharma companies are keen only to develop their unlisted arms and ignoring the listed units .But Abbot is an exception and the parent is taking equal efforts to grow all of its units .The listed  units concentrating in  pain management, gastroenterology, thyroid and anesthesiology and  Its main brands includes  Brufen, Digene , Forane..etc. For FY 2012 Company reported a turnover of Rs.1652 cr ( Rs.1477 Cr in previous year) and a net profit of Rs.145 Cr ( Rs.120 Cr) .EPS was Rs.68 and declared a dividend of Rs.17. A good stock for investment @ CMP Rs.1360 for long term investors. .

Link to Company website HERE

58 comments :

  1. i have posted this many times with no luck. pls answr this sir. reg orient bell , the correction has happened severely.is it right time to average ? 70 was supposed to be good support.ur views sir .

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    Replies
    1. Stocks which fall due to the overall negative sentiments in market without any company specific reason is always a buy for me.But considering the severe sell off going on in mid-small cap ,instead of buying in bulk one may use SIP mode to accumulate good stocks in this carnage.Running away when market is down and coming back at the top is not a good idea.

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    2. thanks a lot sir.

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  2. Stop man giving recommendations none of your picks are working. For example see ion exchange, one of the worst investment pick till now.

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    Replies
    1. You just ignore the recommendations man, and if possible give examples for some mid /small caps which gave very good return in your portfolio in last six months and also give some good stock ideas in current market .I have freedom to recommend and you have freedom to ignore my recommendations.I don't think ION exchange is going to close their business tomorrow and market is going to end by next week.

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    2. if none of the reco is working then why you are coming here. Look alternative....
      its human mendality, if we r in profit.. then we wont wish him for the stock pick where as in loss... always shouting ..... Instead of showing fingers to someone, first show the fingers to your face.

      Nithi

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    3. Ignore them Mr.VP, you are doing a great job!

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    4. Dear Anonymous

      If you have guts....dont post using Anonymous status, atleast give your name...you coward...the people like you only know how to criticise others, as you jealous and looser....if you think you are God...please do post your recommendations and we will track them...

      Andrew

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    5. Even if you bought it at yearly high Ion hasn't fallen as much as stocks like Opto. Valuepick's fundamental analysis has immensely helped the small/midcap investing community. Can Mr. Anonymous point out to another blogger from whom he has benefited more? All that I would request Valuepick to do is to review his stock picks now that the market has corrected so much.

      Thanks,

      kiran

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    6. ion exchange share price today - 250 :) when he said it is not moving it was 83.95 . now it is 3 times double..

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  3. please advice me i want to build up one portfolio and plan to buy at current level please suggest me if i need to replace or ignore any stock :
    Apar industries
    escorts
    tata global beverages
    shalimar paint
    granule
    sabero organics

    please answer me... iam waiting for ur valuable suggestions.....

    ReplyDelete
    Replies
    1. I am positive on Sabero ,Granules and Tata Global not tracking the rest.Whether these stocks are suitable to include in a portfolio depends on your risk profile

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  4. Good answer.
    One should understand that investment in equity is not like FD in bank.

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  5. Dear VP,
    Panacea went very well through WHO audit without any major observation ( 483). I am very positive on this company , since any further orderflow of vaccines from WHO will take the stock to new high.You can add any updated comments .
    Pl can u explain the contigent liabilities of mangalam cement , which is 190 cr . How we should see while evaluating the stock as value investor ?
    Thanks

    SK

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    Replies
    1. Dear SK

      As far as my understanding a major portion of contingent liability of Mangalam Cement is related with the royalty of limestone.

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    2. @sk ,everyone is waiting for this news on panacea.pls share the source on this .thanks

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    3. where did u find that audit went through ?

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  6. abbot is worth a look in uncertain times...im also looking at merck,sanofi,wyeth and other mnc listed companies..they look decent as their mkt cap are less than 5000 cr still....some of them deserve a 10 b dollar mkt cap looking at india opportunity size and 120 billion people....their sales to mkt cap ratio also looks cheap....thety all are ripe for re-rating soon...

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  7. Dear VP sir,

    Kindly take look Menon Pistons Ltd. Please suggest for long term.

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    Replies
    1. This is not a bad stock but the industry is not in limelight now.These times are good for accumulation but one should show enough patience to get benefit.In practice ,many people buy shares saying ' We are ready to HOLD it for 3 year or 5 year ' but when the stock languish due to over all negative sentiments in market for 3 months instead of three years they will start cursing .So whether a stock is good or one can make money on it mainly depends on one's own nature even the fundamentals of company is intact.

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  8. Dear VP,

    What is view on sugar sector at current stage? Seem to for last one year? Challenges facing sector? Can this sector recover anytime soon?

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  9. dear vp,
    is it the correct time to accumulate some beaten down stock eveready ind jain irrigation etc

    ReplyDelete
    Replies
    1. Depends on the reason for price erosion

      If it is only because of overall negative sentiment of market or due to temporary downtrend in the over all industry - such occasions are good to accumulate more.We should analyse whether the management is capable to weather the storm and survive till the revival happens .

      Personally I like Jain irrigation and believe they will come back in another one year.

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  10. Hi VP,

    In this turbulent market conditions did u notice the strength of Jyothy lab.

    What is your view.

    Regards

    Neil

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  11. Dear VP Sir !
    your values on Muthoot capital services Ltd.

    ReplyDelete
    Replies
    1. One issue with Muthoot Capital is - company operating through the offices of another unlisted company Muthoot Fincorp without establishing own offices .I am not sure how market will take this fact .Hence neutral on it.

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  12. can i buy some auto ancillary stock at market price despite of sluggish demand in the coming 2-3 months... which stock u prefer to me.. how about autoline ind and subros

    ReplyDelete
    Replies
    1. Same answer given to Mr Irshad Hashmat , above.

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  13. Hello VP Sir,

    What do you think about Capital First at this price?

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    Replies
    1. May be a good choice ,but will take some time.

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  14. Dear VP,
    Your view on BHEL invited.

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    Replies
    1. Some bounce is possible in near term after the steep fall , but I am not very positive on its long term prospects

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  15. Hi Sir..
    Why Vimal oils not reacted very much on a fantastic news.? Has everything been discounted already..?
    Aman..

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  16. Sir,
    Can I accumulate mangalam cement at current level. I have already 350@170. Kindly advise

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    Replies
    1. its a buy so many times disscussed by VP sir add it

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    2. No change in my previous opinion ,company is still one of the cheap stock from cement sector.Expecting re-rating once the cement sector revives

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  17. vpji your view on kilitch drugs
    market cp of 30crs and company gave 30rs dividend on sale of a unit...

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    Replies
    1. It was only a one time cases .Not seeing any good prospects going forward.

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  18. dear vpji
    whats happening in the stock market ... every other some company loses half of its market cap...
    how will indian investors trust the promoters of the company... very sad phase of market going on....

    ReplyDelete
    Replies
    1. Yes,but it is part of market and we have seen such situations many times in the past 25 years.Ultimately one truth remains - If a company continue its business growth it will always reward share holders.

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    2. Agreed VP sir, see an example of La Opala - hiked 40% in just 2 days in current market phase only because of thier business growth n fundamentals.
      Thank you VP sir for picking up this counter.

      - mayur

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    3. LA OPALA rocks!!!!!!!

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  19. Hello Sir,

    What do you think about Automotive Axles at current price?

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    Replies
    1. Good stock,one should enter in small lots in a phased manner and should show enough patience till the sector re-rates.

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  20. Sir your view on bharat agri. ??
    Possible multibagger ??

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  21. sir, what u think about granula india at this level? can i invest here for 2 to 3 years, please advice sir.
    Thanks

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    Replies
    1. Only a dip in price is not a reason to change my opinion.

      Delete
  22. Dear vp sir,

    I am your avid follower, i currently have granules, mangalam cement, va tech wabag & orientbell in my portfolio, is it the right mix, or i have to include or exclude, kindly if you find time, please advice.

    Sathishkumar

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    Replies
    1. Positive on all mentioned stocks in long term

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  23. Dear Manish Nagar,

    VP sir replied for granules below 130 buy more. I'm holding granules 300 share @ 129. Its nice script for long term.

    Thanks

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  24. Dear VP,

    This refers to Span Diagnostics, i am still holding a good quantity with average price of Rs 70 odd. What is your view on this? Please respond.

    Thanks.

    ReplyDelete
  25. sir,
    please give your opinion on PBA infra and 3m india

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  26. Sir,

    I am keeping my eyes on few stocks plz give your preference

    Granules India
    Sabero org
    Sah petro
    Orient bell
    United Phos
    ION exchange
    Pitti Lamination
    Tata Chemical

    Regards
    Jitendra

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  27. sir your view after aquisition of 31,88,625 shares by ravinder jain and soshil kumar as a gift from Soshil Kumar Jain & Nirmala Jain
    waiting for your reply thank u
    pavan

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  28. Can u pls share ur views on stides acrolab

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  29. hi VP,
    What is your opinion on Themis Medicare at such a low CMP? It is just that the company continues its poor run, however you had recommended it before. Any change in views at this time?
    Regards
    Sakharam

    ReplyDelete

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