GlaxoSmithKline Pharmaceuticals Ltd., incorporated in the year 1924, is a Large Cap company (having a market cap of Rs 25145.78 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 brokerage increases EPS estimates by 6%/7% for FY22E/FY23E, factoring in higher sales of brands such as Augmentin in Anti-Infectives, Calpol in Pain Analgesics, and Betnovate combination brands in Dermatology, led by superior marketing efforts and market share gains. Accordingly, we expect a 21% earnings CAGR over FY21–23. It values GLXO at 38x 12M forward earnings to arrive at TP of INR1,580. It maintains Neutral as current valuations adequately factor in the upside.
Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of March 31, 2021, while FIIs held 1.6 per cent, DIIs 10.9 per cent and public and others 12.6 per cent.
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