GlaxoSmithKline Consumer Healthcare Ltd. share price target

Market share continues to decline, schemes impact gross margins GSK Consumer (SKB) posted 3.2% YoY sales growth (including operating income) to INR11.2b. EBITDA grew 6.6% YoY to INR2.6b (our estimate: INR2.3b), while adjusted PAT grew 4.7% YoY to INR1.9b (our estimate: INR1.75b). Like-to-like GST-adjusted sales grew 4.8% YoY. Like-to-like domestic sales grew 6% YoY while exports declined 26% YoY. Domestic volumes grew 2.5% YoY (on base of 3% decline in 2QFY17) and price increase was around 4% (taken in 1QFY18; SKB has not taken price increase since then)....

GlaxoSmithKline Consumer Healthcare (GSK) has posted a mixed set of numbers for 2QFY18 with its revenues growing by 3.2% YoY to Rs11.2bn vs. our estimate of Rs10.6bn. Its PAT grew by 4.7% YoY to Rs1.92bn vs. our estimate of Rs1.96bn. While revenue from domestic business grew by 6.4% YoY, export revenue declined by 26% YoY due to Preponement of certain sales to 1Q. We expect GSK to report modest 10.2% revenue and 10% earnings CAGR through FY17-19E. Valuations at 30.2x FY19E earnings are lower compared to its average forward PE multiple of 34x in past three years. We expect growth momentum to improve on the back of superior product-mix, increasing penetration levels and strong pricing power. Hence, we maintain our...

GSK Consumer (GCHL) reported muted numbers for the quarter broadly in line with our estimates on both, revenue and PAT fronts. Net revenue for the quarter grew marginally by 3.2% YoY to | 1115.3 crore, broadly in line with our estimate of | 1139.3 crore. Domestic revenue grew 6.4% YoY (4% price growth and 2.4% volume growth). However, exports declined 26% YoY Cost of raw material (RM) increased 133 bps YoY as a percentage of net sales due to 4.5% YoY inflation in commodity cost. However,...

ICICI Securities Ltd | Retail Equity Research Amid de-stocking ahead of GST implementation and a tepid demand environment, total revenues (including auxiliary income) declined only 1.3% YoY to | 1045.9 crore (I-direct estimate: | 977.0 crore). Though revenues were impacted by disruption in CSD & wholesale channels, GSK's initiatives like rolling out of various schemes, extended credit period and compensation for tax difference helped restricted any fall in volumes. Volumes remained flat for the quarter...

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...

Revenue decreased by 10.58% to Rs. 985.34 Cr in Q1FY18 when compared to the previous quarter Revenue decreased by 10.58% to Rs. 985.34 Cr in Q1FY18 when compared to the previous quarter

GSK Consumer's FY17 annual report largely highlights the company's renewed thrust on the core portfolio by making the brand more relevant through scientific findings and consumer awareness. Company's performance has weakened in the last couple of years and we feel there is an urgent need to re..

Revenue rose by 26.76% to Rs. 1041.82 Cr in Q4FY17 when compared to the previous quarter.

After maintaining a neutral to negative stance for four years, we upgrade GSKCH to BUY with TP of Rs 5,950 (earlier Rs5,300) based on fwd. P/E of 29x.Strong pricing power, category leadership and attractive valuation (26x P/E for FY19E) is a reality and improvement in the core category volume growth

ICICI Securities Ltd | Retail Equity Research GSK Consumer reported muted numbers for the quarter largely inline with our estimates. Total revenue (including auxiliary income) grew marginally by 1.4% YoY to | 1208.8 crore (I-direct estimate: | 1196.6 crore). Auxiliary income for the quarter grew 7.7% YoY and came in at | 60.1 crore against our estimate of | 45.5 crore Cost of raw material rose 214 bps as a percent of net sales, which was set off by lower employee cost, 340 bps lower YoY as percent of net sales. Also, against our estimate of decline in advertisement cost,...