Reliance Securities
GlaxoSmithKline Consumer Healthcare (GSK Consumer) reported numbers for 4QFY16 fail short of our estimates due to multiple one-off impacts amid slowdown in consumer demand. While its reported sales fell 9.6% yoy to Rs10.5bn, net profit slipped 8.2% yoy to Rs1.8bn. However, excluding the one-offs, underlying net sales and PBT grew by 1.5% and 5.1%, respectively. We expect GSK Consumer to post revenue and earnings CAGR of 11.8% & 13.4%, respectively through FY16-18E and revise our recommendation on the stock from HOLD to ACCUMULATE with an upwardly revised Target Price of Rs6,305. Exceptional items impact reported numbers...
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