GlaxoSmithKline Consumer Healthcare (GSK) has reported a muted performance in 1QFY18 on the backdrop of trade de-stocking in the run-up to GST roll-out. Net sales for the quarter rose by 4.4% YoY to Rs9.9bn owing to flat volume growth. While EBITDA declined by 18.3% YoY to Rs1.7bn, reported PAT fell by 17.7% YoY to Rs1.3bn due to one-off expenses of Rs230mn pertaining to compensation to trade for unsold stocks and extended credit terms. Trimming down our earnings estimates by 3% for FY18E and FY19E, we expect GSK to report revenue and earnings CAGR of 10.2% and 10.4%, respectively through FY17-19E. The stock currently trades at reasonable PE multiples of 28x FY19E earnings, which are at a 20% discount to...