My Application Form Status

Check the status of your application form with Angel Broking.
  • Companies
  • Everything else
Search

Glaxosmithkline Pharma Ltd Research Report - 21st Jan 2016

Pharmaceutical | Published on Nov 02nd 2015

IT

For 2QFY2016, Glaxo Smithkline Pharma (GSK Pharma) reported a disappointing set of numbers, due to lower- than-expected sales. Sales came in at Rs692cr (V/s Rs720cr expected), a dip of 6.4% yoy, which was due to supply constraints. On the operating front, the company’s gross margins for the quarter came in at 56.4% V/s 53.5% in 2QFY2015. In spite of the rise in gross margins, the OPM came in lower at 17.4% V/s an expected 20.2% and V/s 21.3% in 2QFY2015, mainly owing to lower sales during the quarter. Thus, the reported net profit came in at Rs96cr V/s Rs129cr in 2QFY2015. However, the Adj. net profit came in at Rs101cr V/s Rs129cr in 2QFY2015, a yoy dip of 21.4%. We remain Neutral on the stock. Results below our expectations: For 2QFY2016, GSK Pharma reported a disappointing set of numbers, due to lower- than-expected sales. Sales came in at Rs692cr (V/s Rs720cr expected), a dip of 6.4% yoy, which was due to supply constraints. On the operating front, the company’s gross margins for the quarter came in at 56.4% V/s 53.5% in 2QFY2015. In spite of the rise in gross margins, the OPM came in lower at 17.4% V/s an expected 20.2% and V/s 21.3% in 2QFY2015, mainly owing to lower sales during the quarter. Thus, the reported net profit came in at Rs96cr V/s `129cr in 2QFY2015. However, the Adj. net profit came in at Rs101cr V/s Rs129cr in 2QFY2015, a yoy dip of 21.4%. Outlook and valuation: The company has a strong balance sheet with cash of ~Rs2,000cr, which could be used for future acquisitions or higher dividend payouts. On the operational front, we expect the company’s net sales to post a CAGR of 9.8% to Rs3,158cr and EPS to register a mere CAGR of 6.6% to Rs68.3 over FY2015–17E. We remain Neutral on the stock.

Download Full Report

Accumulate

CMP 3,295
Target Price
Investment Period12 Months

Stock Info

MCAP BSE (Rs in Cr)23,066.35
MCAP NSE (Rs in Cr)23,162.49
P/E (x)66.54
EPS (Rs.)40.93
BV (Rs.)219.95
Div Yield (%)1.84
FV (Rs.)10.00
P/BV (x)12.38
EV/Sales (x)7.99
EV/EBITDA (x)68.87

Shareholding Pattern (%)

Promoter75.0
Public & Others12.0
Institution10.0
Foreign2.0
Corporate1.0
Grand Total100.0

Trade Securely

AngelEye

Portfolio Tracking & Trading Application View Demo