2QCY2012 Result Update | Pharma

August 10, 2012

Abbott India
Performance Highlights
Y/E December (` cr) Net sales EBITDA EBITDA margin (%) Adjusted PAT 2QCY2012 2QCY2011 % chg (yoy) 412 44 10.8 30 358 26 7.3 17 14.9 70.6 353bp 72.6 1QCY2012 % chg (qoq) 376 29 7.8 27 9.5 51.6 300bp 9.0

NEUTRAL
CMP Target Price
Investment Period

`1,536 12 Months

Stock Info Sector Market Cap (Rs cr) Net Debt Beta 52 Week High / Low Avg. Daily Volume Face Value (Rs) BSE Sensex Nifty Reuters Code Bloomberg Code Pharmaceuticals 3,264 (261) 0.4 1,375 / 1,807 1,448 10 17,558 5,320 ABOT.BO BOOT IN

Source: Company, Angel Research

For 2QCY2012, Abbott India Ltd (AIL) reported a top-line of `412cr, in line with our estimate of `410cr and 14.9% higher yoy from `358cr in 2QCY2011. The EBITDA margin expanded by 353bp yoy to 10.8% during 2QCY2012 on account of decline in overall expenses. Consequently, the net profit surged by 72.6% yoy to `30cr in 2QCY2012 from `17cr in 2QCY2011. Synergy with SPIL and focus on advertisement & employee expenses to aid growth: AILs merger with Solvay Pharma (SPIL) in CY2011, has provided AIL a widened product portfolio, thus giving it access to untapped therapeutic segments. In addition, the companys continuing focus on advertisement and employee cost, which witnessed a CAGR of 45.7% and 34.7%, respectively, over CY2006-11, is expected to aid in revenue growth going forward. Outlook and valuation: We expect AIL to post a 12.6% CAGR in revenue to `1,833cr over CY2011-13E. The EBITDA margin is expected to expand by 183bp from 10.0% in CY2011 to 11.8% in CY2013E resulting from reduced expenses on account of the complementary nature of businesses of the two entities getting merged (AIL and SPIL). Hence, we expect the companys net profit to witness a 12.5% CAGR over CY2011-13E to `152cr. At the current market price, the stock is trading at a PE of 21.4x its CY2013E earnings and EV/sales of 1.5x for CY2013E. Considering the high valuation, we recommend a Neutral rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 75.0 5.8 2.0 17.2

Abs. (%) Sensex ABBOTINDIA

3m 6.9 1.3

1yr 2.5

3yr 17.0

6.1 204.9

Key financials
Y/E December (` cr) Net Sales % chg Net Profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoIC (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

CY2010 990 30.1 61 (21.4) 7.0 44.6 53.5 10.7 21.2 54.4 3.1 44.3

CY2011 1,446 46.0 120 97.2 10.0 56.7 27.1 6.0 28.3 63.7 2.1 20.9

CY2012E 1,602 10.8 116 (3.5) 10.4 54.7 28.1 5.3 20.0 52.1 1.8 17.4

CY2013E 1,833 14.4 152 31.2 11.8 71.7 21.4 4.5 22.7 69.5 1.5 13.0

Shareen Batatawala
+91- 22- 3935 7800 Ext: 6849 [email protected]

Please refer to important disclosures at the end of this report

Abbott India | 2QCY2012 Result Update

Exhibit 1: 2QCY2012 performance

Y/E December (` cr) Net Sales Net raw material (% of Sales) Staff Costs (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit EBITDA margin (%) Interest Depreciation Other Income PBT (% of Sales) Tax (% of PBT) Reported PAT PATM Equity capital (cr) EPS (`)
Source: Company, Angel Research

2QCY12 412 237 57.5 53 12.9 77 18.8 367 44 10.8 0 4 5.7 46 11.2 17 36.1 30 30 7.2

2QCY11 358 206 57.6 44 12.2 82 22.9 332 26 7.3 0 3 5.3 28 7.9 11 39.3 17 17 4.8

yoy chg (%) 14.9 14.7 21.1 (5.7) 10.5 70.6 353bp 23.1 7.0 64.0 50.7 72.6 72.6

1QCY12 376 222 59.1 49 13.1 75 19.9 347 29 7.8 0 6 5.3 29 7.6 12 41.9 17 (10) 27 4.4

qoq chg (%) 9.5 6.6 7.4 3.3 6.0 51.6 300bp (33.3) 7.2 60.9 38.7 76.9 9.0

1HCY12 788 474 60.1 103 13.0 152 19.3 729 59 7.5 0 10 11 60 7.7 29 47.6 32 (10) 42 4.0

1HCY11 601 361 60.1 73 12.1 132 22.0 566 35 5.8 0 6 8 37 6.2 14 38.4 23 23 3.8

% chg 31.1 31.2 41.2 15.3 28.7 70.4 173bp 71.4 30.9 12.6 100.1 37.2 82.3

Exhibit 2: Actual vs. estimates (2QCY2012)

(` cr) Total Income EBIDTA EBIDTA margin (%) Adjusted PAT
Source: Company, Angel Research

Actual 412 44 10.8 30

Estimate 410 39 9.6 32

Var (%) 0.4 13.1 122bp (7.3)

Operating costs decline post amalgamation- EBITDA margin expands

For 2QCY2012, AIL reported a revenue at `412cr, in line with our estimate of `410cr and 14.9% higher on a yoy basis. The operating cost witnessed a decline during the quarter which led to an expansion in the EBITDA margin by 353bp yoy to 10.8% from 7.3% in 2QCY2011. However, the net profit came in at `30cr in 2QCY2012, 7.3% lower than our estimate of `32cr on account of lower than expected other income.

August 10, 2012

Abbott India | 2QCY2012 Result Update

Investment rationale
Synergies with SPIL to improve the business model
Product portfolio to expand, giving access to newer segments
AIL is present across different segments such as pain management, gastroenterology, metabolic, urology, thyroid, diabetes, neurology, anesthesiology and neonatology. The company has some of the leading pharmaceutical brands such as Digene, Cremaffin, Brufen, Thyronorm, Zolfresh and Pediasure, which are the main revenue drivers. Post the merger with SPIL, AILs product portfolio has widened, providing it leadership position in different therapeutic segments AIL had a gastroenterology portfolio comprising Digene, Cremaffin and Ganaton. Digene is the market leader in the antacid segment with a 35% market share, while Cremaffin is a leader in the laxative segment. With the addition of Duphalac, Creon and Udiliv through the merger of SPIL, the company gained leadership in the gastroenterology segment in India. In addition, the company got access to the womens health segment post-merger with products such as Duphaston, Duvadilan, Pro-9, Life and B-crip. Duphaston was a major contributor (23%) to the total revenue of SPIL in CY2010. Moreover, AILs CNS portfolio strengthened with the addition of SPILs Vertin, a market leader in the vertigo segment in India. Thus, synergy between the two companies is expected to help AILs growth in the long term.

Contribution margin to witness an uptrend

The companys net raw-material cost as a percent of sales has started witnessing a downtrend to ~58% levels since 2QCY2011. Earlier it was at more than 60% levels. We expect the raw material cost (as a percentage of sales) to stabilize in the higher 50s on account of a change in the business mix for the combined entity. This is expected to result in expansion of contribution margin by 183bp from 10.0% in CY2011 to 11.8% in CY2013E.

Exhibit 3: Raw material cost declining post merger

250 200 64.3 61.7 60.4 58.7 57.6 100 50 0 55.7 59.1 63.8 66 63 60 57.5 57 54 51

Exhibit 4: Raw material cost shrink on new product mix

1,200 1,000 800 68.3 66.3 65.4 70 66 62 58.7 57.0 58 56.4

(` cr)

(%)

150

(` cr)

147

157

168

155

206

229

227

222

237

400

455

504

647

848

2QCY10

3QCY10

4QCY10

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

2QCY12

0 CY2008 CY2009 CY2010 CY2011 CY2012E CY2013E % of net sales (RHS) Net raw material cost (LHS)

913

200

1,034

54 50

Net raw material (LHS)

% of net sales (RHS)

Source: Company, Angel Research (post 2QCY2011 numbers include consolidated results for AIL and SPIL)

Source: Company, Angel Research (*CY2011-13E are consolidated results for AIL and SPIL)

August 10, 2012

(%)

600

Abbott India | 2QCY2012 Result Update

Strong balance sheet

AIL is a debt-free company with cash reserves of `189cr as of December 2010, and RoE and RoIC of 21.2% and 65.6% respectively for CY2010. Post amalgamation, cash on AIL books stands at `259cr for CY2011 (SPIL had cash of `51cr for CY2010). We expect the cash to increase to `447cr by CY2013E end, while RoE and RoIC are expected at 22.7% and 69.5% respectively for CY2013E. Due to high cash reserves in the books, we believe there is potential for the company to get delisted.

August 10, 2012

Abbott India | 2QCY2012 Result Update

Financials
Exhibit 5: Change in estimates
Y/E December Net sales (` cr) EBITDA margin (%) EPS (`)
Source: Angel Research

Earlier estimates CY2012E 1,661 9.7 60.7 CY2013E 1,918 11.9 90.4

Revised estimates CY2012E 1,602 10.4 54.7 CY2013E 1,833 11.8 71.7

% chg CY2012E (3.6) 78bp (9.9) CY2013E (4.4) (16)bp (20.7)

Advertisement & employee spend to drive revenue

Advertisement spend (as a percentage of sales) increased from 2.6% in CY2006 to 6.1% in CY2011, while employee expenses (as a percentage of net sales) increased from 7.4% in CY2006 to 11.6% in CY2011. We expect the company to maintain its focus on these expenses which form a critical part of the pharmaceutical industry, thus facilitating medium to long term revenue growth. Hence, we expect the revenue to post a 12.6% CAGR over CY2011-13E.

Exhibit 4: Continued focus on advertisement and employee spend to drive revenue growth
100 80 60 2.6 40 20 13.44 0 CY2006 CY2007 CY2008 CY2009 CY2010 CY2011 Advertisement cost (LHS) % of net sales (RHS) 14 20 2.4 24 49 88 5.1 6.1 7 6 5 180 160 140 120 9.5 SPIL 9 8.0 7.4 8 7 38 CY2006 47 CY2007 63 CY2008 78 CY2009 111 CY2010 168 6 CY2011 Employee expense (LHS) % of net sales (RHS) 10.3 10.9 11 10 11.6 12

(` cr)

SPIL

(%)

3 2 1 0

80 60 40 20 0

Source: Company, Angel Research

Exhibit 6: Revenue growth to normalize on a higher base of CY2011

2,000 46.0 1,600 1,200 30.1 40 30 20 12.0 400 14.3 10.8 14.4 10 0 CY2008 CY2009 CY2010 CY2011 CY2012E CY2013E Revenue (LHS) Revenue growth (RHS) 50

(` cr)

800

1,446

1,602

Source: Company, Angel Research (*CY2011-13E are consolidated results for AIL and SPIL)

August 10, 2012

1,833

666

761

990

(%)

(%)

3.1

(` cr)

3.1

100

Abbott India | 2QCY2012 Result Update

Blended EBITDA margin to witness expansion

The average EBITDA margin for SPIL was at ~24% for the past five years, while that of AIL has been at ~11% for the same period. The consolidation of the two businesses is expected to result in operational efficiencies thus leading to a gradual expansion in the EBITDA margin. We expect the EBITDA margin to expand by 183bp over CY2011-13E to 11.8% in CY2013E.

Exhibit 5: Higher blended EBITDA margin vs AILs margins

200 160 120 28 24 20

(` cr)

80 11.1 40 0 76 CY2008 97 CY2009 69 CY2010 Blended margin 144 CY2011 167 CY2012E 216 10.0 10.4

11.8 12 8 4

CY2013E SPILs margin

EBITDA (LHS)

AIL's margin

Source: Company, Angel Research (*CY2011E-13E are consolidated results for AIL and SPIL)

Improved business model to augment profit growth

The amalgamation of AIL and SPIL is expected to lead to economies of scale owing to the complementary nature of drugs, resulting in an expansion of EBITDA margin, which consequently will result in better profit. Hence, we expect the companys net profit to post a CAGR of 12.5% over CY2011-13E, from `120cr in CY2011 to `152cr in CY2013E.

Exhibit 7: Profit margin to recover in CY2013E

180 150 120 9.1 10.2 11 10 8.3 9

(` cr)

60 30 0 61 CY2008 78 CY2009 61 CY2010 PAT (LHS) 6.2 120 CY2011 116

7.3

7 6 152 5

CY2012E

CY2013E

PAT margin (RHS)

Source: Company, Angel Research (*CY2011E-13E are consolidated results for AIL and SPIL)

August 10, 2012

(%)

90

8.3

(%)

14.1

15.7

16

Abbott India | 2QCY2012 Result Update

Exhibit 7: Relative valuation

Sales (` cr) Glaxo AIL Aventis Pfizer Novartis Wyeth Astrazeneca 2,396 1,597 1,264 1,095 861 609 485 OPM (%) 27.3 10.9 15.1 18.0 14.6 28.1 (2.9) PAT (` cr) 632 147 172 185 141 141 20 EPS (`) 74.6 69.0 74.5 62.0 44.2 62.1 7.9 RoE (%) 30.3 22.1 14.5 14.2 18.6 30.1 10.3 PE (x) 28.2 22.3 29.6 20.0 15.4 14.7 205.4 P/B (x) 8.8 5.3 4.6 2.8 2.6 4.0 21.5 EV/Sales (x) 6.6 1.9 3.8 2.6 2.5 2.9 7.6 EV/EBITDA (x) 24.2 17.4 25.4 14.4 17.2 10.3 (257.9)

Source: Company (all above figures are on a TTM basis)

Outlook and valuation

We have revised our revenue and earnings estimates downwards for CY2012E and CY2013E, since the new business model post consolidation would take some time to get streamlined. At current levels, the stock is trading at a PE of 21.4x its CY2013E earnings and P/BV of 4.5x for CY2013E. Due to expensive valuations, we assign a Neutral rating on the stock.

Exhibit 8: One-year forward PE band

2,000 1,600 1,200
(`)

Exhibit 9: One-year forward EV/Sales band

4,000 3,500 3,000
EV (` cr)

2,500 2,000 1,500 1,000 500 0 Aug-07 EV Aug-08 1.6x Aug-09 1.2x Aug-10 0.8x Aug-11 Aug-12 0.4x

800 400 0 Aug-07

Aug-08 Price

Aug-09 8x

Aug-10 12x

Aug-11 16x

Aug-12 20x

Source: Company, Angel Research

Source: Company, Angel Research

August 10, 2012

Abbott India | 2QCY2012 Result Update

Key concerns
Shift of focus to the unlisted subsidiary
Abbott Laboratories, USA, bought the healthcare solution business from Piramal Healthcare Ltd (PHL) for a consideration of US$3.8bn in 2010, which was transferred to the unlisted subsidiary, Abbott Healthcare Pvt Ltd (AHPL). The transfer included manufacturing facilities at Baddi, Himachal Pradesh; rights to approximately 350 brands and trademarks; and ~5,000 employees relating to its domestic formulations business. Since the unlisted subsidiary is 100% owned with extended portfolio from Piramals healthcare business, there is a possibility that the parent company shifts its focus to the unlisted entity. Also, the merger would limit listed AILs access to untapped therapeutic segments where PHL already exists.

Impact of the new drug pricing policy

The New Pharmaceutical Pricing Policy (NPPP) draft note released by Department of Pharmaceutical in 2011 is set to replace the Drug Policy of 1994. This new policy is based on the revised National List of Essential Medicines (NLEM) released in 2011, which includes 348 drugs instead of 74 drugs previously. Principles of the policy are based on three basic factors: 1) essentiality of drugs, 2) market-based pricing (MBP) and 3) control of formulation prices only. AIL currently has ~40% of its drugs under price control. If this number increases it could hinder the profitability of the company.

Company Background
AIL is a 50.44% subsidiary of Abbott Capital India Ltd, UK, which is a subsidiary of Abbott Laboratories, USA. In CY2011, the company merged with Solvay Pharma, which was acquired by the parent company in CY2010. Post merger, AIL strengthened its distribution network to 35 distribution points (from 18), and caters to 4,500 stockists and 1,50,000 retailers. AILs employee count increased from 1,747 in CY2010 to 2,425 in CY2011. The company caters to a wide range of therapeutic segments like gastroenterology, womens health, CNS, metabolics, pain management, anesthesia, neonatology, vitamins, etc.

August 10, 2012

Abbott India | 2QCY2012 Result Update

Profit & Loss Statement

Y/E December (` cr) Gross sales Less: Excise duty Net Sales Total operating income % chg Net Raw Materials Power & Fuel costs Personnel Other expenses Total Expenditure EBITDA % chg (% of Net Sales) Depreciation EBIT % chg (% of Net Sales) Interest & other charges Other Income (% of sales) PBT % chg Tax (% of PBT) PAT (reported) Extraordinary (Exp)/Inc. ADJ. PAT % chg (% of Net Sales) Basic EPS (Rs) Fully Diluted EPS (Rs) % chg CY2009 767 6 761 761 14.3 504 5 62 92 664 97 28.7 12.8 9 88 28.6 11.6 0 29 3.8 117 28.4 40 34.0 78 (0) 78 28.3 10.2 56.7 56.8 28.3 CY2010 996 6 990 990 30.1 647 7 111 155 920 69 (28.6) 7.0 11 58 (34.1) 5.9 0 36 3.6 94 (34.0) 33 35.3 61 (0) 61 (21.4) 6.2 44.6 44.6 (21.4) CY2011 1,464 18 1,446 1,446 46.0 848 8 167 278 1,302 144 107.3 10.0 15 129 121.5 8.9 0 51 3.5 180 121.6 60 33.2 120 120 97.2 8.3 56.7 56.7 26.9 CY2012E 1,623 21 1,602 1,602 10.8 913 10 203 308 1,435 167 16.2 10.4 18 149 15.9 9.3 24 1.5 173 15.9 57 33.0 116 116 (3.5) 7.3 54.7 54.7 (3.5) CY2013E 1,857 23 1,833 1,833 14.4 1,034 12 220 352 1,617 216 29.1 11.8 20 196 31.4 10.7 31 1.7 227 31.4 75 33.0 152 152 31.2 8.3 71.7 71.7 31.2

August 10, 2012

Abbott India | 2QCY2012 Result Update

Balance Sheet
Y/E December (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability (Net) Other Long Term Liabilities Long Term Provisions Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long term Loans & adv Current Assets Cash Loans & Advances Inventory Debtors Other current assets Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 107 58 49 0 339 176 17 102 44 114 225 274 118 69 50 1 403 189 20 129 65 148 255 306 192 112 80 1 31 678 259 27 255 133 5 241 438 549 211 130 81 1 31 705 348 30 212 110 5 197 508 621 232 150 82 1 31 819 447 34 206 126 6 204 615 729 14 258 272 2 274 14 292 305 0 306 21 523 544 (6) 11 549 21 595 616 (6) 11 621 21 703 724 (6) 11 729 CY2009 CY2010 CY2011 CY2012E CY2013E

August 10, 2012

10

Abbott India | 2QCY2012 Result Update

Cash Flow Statement

Y/E December (` cr) Profit before tax Depreciation Change in Working Capital Other income Direct taxes paid Others Cash Flow from Operations (Inc.)/Dec. in Fixed Assets (Inc.)/Dec. in Investments (Inc.)/Dec. in L.T. Loans & adv Deposit having maturity more than 3m Other income Others Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Cash acquired on amalgamation Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances CY2009 CY2010 CY2011 CY2012E 117 9 (37) (29) (40) 17 37 (6) 29 (25) (2) (1) (27) 5 (23) 12 164 176 94 11 (18) (36) (33) 27 46 (12) 10 36 (40) (6) (27) (0) (27) 13 176 189 180 15 (112) (51) (60) 52 24 (74) (31) 32 51 59 37 8 (42) (8) (42) 51 70 189 259 173 18 18 (24) (57) 128 (19) 24 5 (44) (44) 89 259 348 CY2013E 227 20 (7) (31) (75) 134 (21) 31 10 (44) (44) 99 348 447

August 10, 2012

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Abbott India | 2QCY2012 Result Update

Key Ratios
Y/E December (` cr) Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover Inventory / Sales (days) Receivables (days) Payables (days) WC (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (0.6) (1.8) 441.5 (0.6) (2.7) 1,455.1 (0.5) (1.8) 4,297.9 (0.6) (2.1) (0.6) (2.1) 7.4 47 18 66 15 8.8 43 20 52 21 9.3 48 25 54 31 8.0 53 25 50 39 8.3 42 25 46 33 35.4 112.2 31.5 20.1 54.4 21.2 30.2 63.7 28.3 25.5 52.1 20.0 29.1 69.5 22.7 11.6 0.7 9.7 74.1 34.8 (0.7) 172.2 5.9 0.6 9.3 35.2 (0.6) 8.9 0.7 7.1 42.5 (0.5) 9.3 0.7 5.9 36.8 (0.5) 10.7 0.7 6.5 46.9 (0.6) 56.7 56.8 63.4 17.0 198.6 44.6 44.6 52.9 17.0 223.3 56.7 56.6 63.7 17.0 256.1 54.7 54.7 63.1 18.0 289.9 71.7 71.7 81.0 18.0 340.8 42.0 63.4 12.0 1.1 4.1 31.7 11.3 53.5 52.9 10.7 1.1 3.1 44.3 10.1 27.1 63.7 6.0 1.1 2.1 20.9 5.5 28.1 24.3 5.3 1.2 1.8 17.4 4.7 21.4 19.0 4.5 1.2 1.5 13.0 3.9 CY2009 CY2010 CY2011 CY2012E CY2013E

August 10, 2012

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Abbott India | 2QCY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Abbott India Ltd. No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

August 10, 2012

13