GlaxoSmithKline Pharmaceuticals Ltd. share price target

For 2QFY2017, sales stood at Rs783cr vs. Rs700cr expected and vs. Rs700cr in 2QFY2016, a yoy growth of 11.8%. On the operating front, the OPM came in at 15.9% vs. 17.2% in 2QFY2016 and vs. 17.0% expected. The company's OPM was impacted by other expenses, which grew by 40.5% yoy. Thus, the company posted an Adj. net profit of Rs98cr vs. Rs..

GSK Pharma's (GLXO) 1QFY17 sales increased 10% YoY to INR6.9b (3% below estimate), while EBITDA declined 32% YoY to INR702m (26% below estimate) and PAT fell 23% YoY to INR723m (29% miss). Reported PAT included exceptional income of INR18m related to the sale of land at Mulund. Capacity constrains at Nasik facility, unavailability of quality third suppliers and policy actions have been the key issues for GSK over the past few quarters. Deal with Novartis boosts sales growth: Total sales growth of ~10% YoY includes ~4% growth from the vaccines asset sale agreement with Novartis...

For 4QFY2016, GlaxoSmithKline Pharmaceuticals (GSK)'s sales rose by Rs686cr, up 11.8% yoy. On the operating front, the gross margin and the EBITDA margin came in at 55.0% and 17.8% respectively V/s 57.1% and 19.4% during the corresponding period of the previous year. The reported net profit for the quarter thus came in at Rs106cr V/s Rs10..

For 3QFY2016, GlaxoSmithKline Pharmaceuticals (GSK Pharma) posted a disappointing operating performance. For the quarter, the company posted sales of Rs729cr (V/s Rs730cr expected), a growth of 12.8% yoy. On the operating front, the company posted a gross margin of 53.1% V/s 55.6% in the corresponding period of the previous year. The OPM came in at 14.1% V/s 17.0% during the corresponding period of previous year, mainly owing to lower gross margin on a yoy basis. This was against our expectations of 18.1%. Thus, the reported net profit came in at Rs82cr V/s Rs55cr in the corresponding period of last year. However, the Adj. net profit came in at Rs80cr V/s Rs45cr in 3QFY2015, a yoy growth of 76.4%. We remain Neutral on the stock. Results below our expectations: For 3QFY2016, the company posted a disappointing operating performance. For the quarter, the company posted sales of Rs729cr (V/s Rs730cr expected), a growth of 12.8% yoy. On the operating front, the company posted a gross margin of 53.1% V/s 55.6% in the corresponding period of the previous year. The OPM came in at 14.1% V/s 17.0% during the corresponding period of previous year, mainly owing to lower gross margin on a yoy...

GSK Pharma's total revenues increased by 13% YoY to Rs 7356 mn in Q3FY16 lower than our estimates of Rs 7513 mn. Operating margins decreased by 270bps YoY to 14.9% (lower than our estimate of 17.7%) on account of lower gross margins and CSR exps of Rs 136.7 mn.