GlaxoSmithKline Pharmaceuticals Ltd., incorporated in the year 1924, is a Large Cap company (having a market cap of Rs 24384.30 Crore) operating in Pharmaceuticals sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 871.22 Crore, down -1.93 % from last quarter Total Income of Rs 888.36 Crore and up 9.58 % from last year same quarter Total Income of Rs 795.09 Crore. Company reported net profit after tax of Rs 156.51 Crore in latest quarter.
Investment Rationale
The management strategy is to drive growth by aiming on the three pillar approach Grow, Build and shred. The top-20 brands focus continues to be key driver for growth. Building new specialty brands (parents pipeline) over a period of time would enable room for focused growth. Continuous cost optimization and digitalized platform enables way for medium to long term growth. The brokerage expects 2-3 innovative drugs to India, in coming fiscal followed by oncology pipeline. Post Vemgal, management has been focusing on improving cost efficiency, which should be earnings accretive. It values GSK at 39x FY23E with a TP of Rs 1,750.
Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of Dec 30, 2020, while FIIs held 1.5 per cent, DIIs 5.3 per cent and public and others 18.2 per cent.
