Lack of Capex in last 2 years leads to Valuation drop of 40% in Abbott India share; if no meaingful capex announced can it lead to another 25% drop from current levels..
Since peaking in late June 2025, Abbott India share price has been on a steady decline.. P/B has moderated from 20 to 12, almost 40% shaved off.. though ROCE and CFO have been great, but as there is no meaningful fixed asset increase since 2020 (only 20%); thats probably the reason market is not liking this MNC firm.
Reminded me of another MNC (Castrol) which for long was just chugging along without adding any further assets, and its share price also remained stagnant, even though its EPS increased steadily 4.8(2014) to 8.36(2020) there the valuation drop was even more serious, P/B went from 50+ to 10. But post 2020 it increased Fixed Assets from 209 to 348 Cr and seen a comparable share price rise, though valuation wise its still close to 10-12 P/B..
Will Abbott India face a similar fate.. Its P/B is racing towards its long term average of 9 from current 12