GlaxoSmithKline Consumer Healthcare Ltd. share price target

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,...

GlaxoSmithKline Consumer Healthcare (GSK Consumer) has delivered a weak performance in 3QFY17. Its net sales fell by 11.7% to Rs8.2bn, while net profit decreased 8.3% YoY to Rs1.4bn. Marred by demonetization and weak consumer demand environment, its volumes in the core HFD segment fell by 17% in the quarter. Trimming down our earnings estimate by 7% for FY18E in the wake of poor quarterly performance, we expect GSK Consumer to post modest revenue and earnings CAGR of 2.9% and 6% respectively through FY16-18E. However, considering the Company's market leadership, strong brands and comfortable valuations, we...

ICICI Securities Ltd | Retail Equity Research GSK Consumer reported a weak performance for the quarter impacted by the decline in consumption offtake and reduction in trade & distributors inventory pipeline as a result of demonetisation. Sales for the quarter declined 12.4% YoY to | 960.2 crore. We were factoring in a marginal decline of 1.5% YoY to | 1013.9 crore on account of expected higher auxiliary income. However, the company reported 5.3% YoY decline in auxiliary income...

GSK Consumer is the largest player in the Rs18bn Indian health drink market, with a 70% market share. The category has entered a new orbit, with growth rates sustaining above 10%. Value-added variants of Horlicks account for ~18% of brand sales. With super premium HFDs priced at INR 1000 / Kg accounting for 10% of value and growing at 35%, GSK Consumer intends to enter the segment. Also, management aims to increase non-HFD segment's share from the current 5% to 15% over the next 3 years by focusing on Sensodyne toothpaste, noodles, oats, biscuits and nutri-bars. Reaches 800,000 outlets. GSK Consumer has a strong brand...

Despite 3.5% price hike initiated by GSK in the fiscal, its gross margins remained flat at 64.1%, primarily due to sharp rise in the prices of some Agri-inputs i.e. sugar and wheat. A&P; spend declined by 170bps yoy to 12.4% sales, while employee cost rose by 110bps yoy to 12.8% mainly due to negative operating leverage. The resultant EBITDA margins increased 40bps yoy to 18.4% of sales. Other income grew by just 4.6% yoy to Rs1.2bn, although business auxiliary income rose by 13% yoy in 2QFY17. The commission which the company used to earn from distributing GSK OTC products...

ICICI Securities Ltd | Retail Equity Research GSK Consumer Healthcare (GCHL) reported lower-than-expected Q2FY17 numbers. Net sales for the company declined marginally by 1.3% YoY to | 1135.6 crore (I-direct estimate: | 1144.8 crore) Operating margins slightly improved 75 bps to 20.6% (I-direct estimate: 21.4%) largely on account of lower A&P; spend (down 153 bps as percentage of sales) partly offset by higher employee cost PAT declined 16.6% YoY to | 183.7 crore (I-direct estimate: | 199.2...

GSK Consumer is the largest player in the Rs18bn Indian health drink market, with a 70% market share. The category has entered a new orbit, with growth rates sustaining above 10%. Value-added variants of Horlicks account for ~18% of brand sales. With super premium HFDs priced at INR 1000 / Kg accounting for 10% of value and growing at 35%, GSK Consumer intends to enter the segment. Also, management aims to increase non-HFD segment's share from the current 5% to 15% over the next 3 years by focusing on Sensodyne toothpaste, noodles, oats, biscuits and nutri-bars. Reaches 800,000 outlets. GSK Consumer has a strong brand...

GlaxoSmithKline Consumer Healthcare (GSK Consumer) has reported lower-thanestimated performance in 1QFY17 with its net sales declining by 5.7% yoy to Rs8.9bn and net profit growing by just 2.9% yoy to Rs1.6bn. Volume growth in the domestic business is estimated to have been flat. However, as more than 2/3rd of its revenues accrue from urban markets, any apparent recovery in urban demand should benefit the Company the most. Furthermore, increasing share of Low Unit Pack (LUP), improving distribution network and strong pricing power are expected to aid growth for GSK Consumer, going forward. The stock currently trades at reasonable valuations of 30.7x FY18E earnings. We revise our recommendation...

GSK Consumer Healthcare (GCHL) reported lower-than-expected Q1FY17 net sales with YoY decline of 1.6% to | 1002.6 crore (I-direct estimate: | 1040.2 crore). Adjusting for the impact of Ind AS, net sales were at | 934 crore. Other operating income increased 3.8% YoY to | 56.8 crore on the back of 13% increase in business auxiliary income..ICICI Securities Limited maintain BUY recommendation with a target price of | 6765 per share.

Trendlyne has 9 reports on GSKCONS updated in the last year from 3 brokers with an average target of Rs 6485. Brokers have a rating for GSKCONS with 1 downgrade,3 price downgrades,1 upgrade and 2 price upgrades in past 6 months.

Gross revenue fell by 2% yoy due to slowdown in exports and Foods We believe that severe slowdown in South India has impacted the company more than peers as South is its dominant market HFD domestic consumption was flat and was driven by 2% growth in Horlicks We estimate volume decline of 2% yoy and price growth of 4% yoy in Horlicks Health Foods division gained value market share by 100bps yoy and Horlicks base/Horlicks extensions gained value market share by 60/60bps yoy. Business auxiliary income rose 13% yoy....