GlaxoSmithKline Consumer Healthcare Ltd. share price target and research reports

Name: Latest research reports of GlaxoSmithKline Consumer Healthcare Ltd. authored by Motilal Oswal and published by - Trendlyne research reports.
Item: GlaxoSmithKline Consumer Healthcare Ltd.
Rating: 3
Author: Motilal Oswal

Latest analyst research reports with target prices and PDF download for GSKCONS, BSE:500676 GlaxoSmithKline Consumer Healthcare Ltd.

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GlaxoSmithKline Consumer Healthcare Ltd.

07 Feb 2020

Profits in line; RM inflation to keep margins under check

Neutral: GlaxoSmithKline Consumer H...

Target

Motilal Oswal

7 February 2020 While profits were in line, sales were significantly affected by a sharp decline in exports and a poor performance in the foods business. According to management, the focus on top-line growth may keep near- term margins under check. Given the nature of the Hindustan Unilever and GSK Consumers (SKB) transaction, the stock price of the latter will track that of the former and not its own financial performance. Maintain YoY/+60bp QoQ) and at 11.5% for Boost (+70bp YoY/+10bp QoQ). Volume market share (L3M Dec19) stood at 51.5% and 15.4% for Horlicks and Boost, respectively. Commodity inflation stood at 6.5% for 3QFY20; inflation is likely to persist for a few more quarters. SKB would not take price increase in line with or ahead of inflation as it can lead to a decline in category penetration.

GlaxoSmithKline Consumer Healthcare Ltd.

05 Aug 2019

Lower adspends lead to significant margin beat

Neutral: GlaxoSmithKline Consumer H...

Target

Motilal Oswal

Value market share (MAT Jun'19) for Horlicks stood at 44.3% (up 10bp YoY/ 140bp QoQ) while for Boost, it stood at 11.2% (flat YoY, up 50bp QoQ). Volume market share (MAT Jun'19) for Horlicks/Boost stood at 50.9%/14.9%. Gross margin expanded 40bp YoY to 70%, while EBITDA margin was up 270bp YoY to 23.5% (v/s est. of 20.3%). Concall highlights: (1) Volume growth for 1QFY20 was broad-based; domestic volume growth for both Horlicks/Boost stood at 4% v/s overall volume growth of 5.4%, which was supported by exports. (2) Pricing and deflation led to gross...

GlaxoSmithKline Consumer Healthcare Ltd.

05 Aug 2019

GSK Consumer Healthcare

Hold: GlaxoSmithKline Consumer H...

Recommendation

ICICI Securities Limited

Efforts in place to reduce concentration risk GSK Consumer (GSKCH) derives more than 80% of its revenues from eastern, southern regions. States like Karnataka and West Bengal together constitute more than 22% of sales in the HFD category in these regions. However, the company is slowly increasing its presence in other regions and is working on a strategy wherein the focus has shifted to Chocolate Horlicks to drive growth in western and northern regions as consumers in these regions prefer brown malt drink to white malt drink. The company also...

GlaxoSmithKline Consumer Healthcare Ltd.

20 May 2019

Strategy reset working, but valuations largely capturing benefits

Neutral: GlaxoSmithKline Consumer H...

Motilal Oswal

and lower other expenses (-200bp YoY/ -380bp QoQ), partly offset by increased employee cost (+190bp YoY to 19.5%). Consequently, EBITDA grew ~5% YoY to INR1.6b (our estimate: INR1.4b). Other income includes liabilities written back to the tune of INR231m. Adjusting for the same, PAT stood at INR1.2b (our estimate: INR961m)....

GlaxoSmithKline Consumer Healthcare Ltd.

13 May 2019

GSK Consumer Healthcare

Buy: GlaxoSmithKline Consumer H...

ICICI Securities Limited

GSK Consumer's distribution network comprises of over 800 distributors and a direct coverage of over 8 lakh retail outlets. Further, the company added 190,000 outlets over last one year, taking its distribution reach to 1.96 million outlets. Moreover, GSK has presence across 24,000 villages through rural sub-distributors and village level entrepreneurs (VLE's) across 9 States. The company has also strengthened its VLE program ensuring its products are now available across 4.5 million outlets. With rural markets continue to outpace urban market growth and deliver double digit growth quarter on...

GlaxoSmithKline Consumer Healthcare Ltd.

15 Feb 2019

In -line performance; Commodity inflation creeping up

Neutral: GlaxoSmithKline Consumer H...

Target

Motilal Oswal

15 February 2019 volume growth was 9.6% YoY. EBITDA increased 14.9% YoY to INR2.4b (our category saw revenue growth of 7.5% YoY. stood at 43% (-110bp YoY, -30bp QoQ) while value market share for Boost stood at 10.8% (-50bp YoY, -10bp QoQ). Higher staff costs (+140bp YoY to 14%) and ad spends (+110bp YoY to 12.1%) were almost entirely offset by lower other expenses (-220bp YoY to 23.

GlaxoSmithKline Consumer Healthcare Ltd.

15 Feb 2019

GSK Consumer Healthcare

Buy: GlaxoSmithKline Consumer H...

Recommendation Target

ICICI Securities Limited

ICICI Securities Ltd | Retail Equity Research Overall volume growth of 8.7% led to 7.5% increase in Q3FY19 sales to | 1,116.8 crore. HFD category volume growth was at 9.6% Auxiliary income increased 20% YoY on the back of improvement in OTC products and oral care portfolio performance. Volume market share of Horlicks was 49.5% with value market share of 43% (decline 30 bps QoQ). On the other hand, volume market share of Boost was 13.9% with value market share of 10.8% (decline of 10 bps QoQ)...

GlaxoSmithKline Consumer Healthcare Ltd.

04 Dec 2018

GSK Consumer Healthcare

Hold: GlaxoSmithKline Consumer H...

Recommendation Target

ICICI Securities Limited

In March 2018, GlaxoSmithKline Plc had announced a strategic review of GSK Consumer Healthcare's (GSKCH) consumer nutrition business, including brands like Horlicks & Boost as the company was exploring a partial or full sale of its stake in GSKCH by end of 2018. This was triggered by GSK looking to help fund its $13 billion buyout of the Novartis stake in...

GlaxoSmithKline Consumer Healthcare Ltd.

05 Nov 2018

GSK Consumer Healthcare

Buy: GlaxoSmithKline Consumer H...

Target

ICICI Securities Limited

ICICI Securities Ltd | Retail Equity Research Strong volume growth of 13.7% led to 14.4% increase in Q2FY19 sales to | 1,272 crore. Export revenues swelled by 74% on account of addition of Malaysia in the export market. The domestic business grew 10.8% on account of domestic volume growth of 8.7% Auxiliary income increased 20% YoY on the back of an improvement in OTC products and oral care portfolio performance. Volume market share of Horlicks was 49.5% with value market share of 43.3%. On...

Is GlaxoSmithKline Consumer Healthcare Ltd. worth buying?

60 Votes:

Buy 78.33%

Sell 11.67%

Hold 10.0%