Q4FY19 result highlights
Key positives: Higher GMs, inline employee costs
Key negatives: Lower revenues, lower other expenses
Impact on financials: We have maintained our FY19/20 earnings estimates
Valuations & view
After a prolonged period of slow growth and supply related disruptions, Glaxo had begun to shows signs of turning the corner in terms of clocking double digit revenue growth over last few quarters. Despite the likely turnaround, rich valuations (~48x FY20E EPS; substantial premium to MNCs like Pfizer and Sanofi) and limited near-term triggers would cap upside from these levels. Reiterate Underperformer, with a target price of Rs1,190/share.
GlaxoSmithKline Pharmaceuticals Limited is a pharmaceutical company. The Company and its subsidiary are engaged in the business of manufacturing, distributing and trading in pharmaceuticals. The Company develops a range of products in approximately three areas, including pharmaceuticals, vaccines and consumer healthcare. The Company's product portfolio includes prescription medicines and vaccines. The Company's prescription medicines range across therapeutic areas, and it also offers a range of vaccines for prevention of life-threatening diseases, such as pneumococcal disease, meningitis, hepatitis, rotavirus, whooping cough, small pox and influenza. It provides healthcare solutions to patients, with a range of prescription medicines across areas covering anti-infectives, dermatology, gynecology, diabetes, oncology, cardiovascular disease and respiratory diseases. The Company's manufacturing unit is located at Nashik, and its clinical development center is located in Bangalore.
IDFC Securities Ltd., a subsidiary of the Infrastructure Development Finance Company (IDFC) wherein the Government of India holds a 20% interest, is India's leading equities broker catering to most of the prominent financial institutions, both foreign and domestic investing in Indian equities. A research team of experienced and dedicated experts ensures the flow of critically investigated stock ideas and portfolio strategies for our clients. Our coverage spans across various growth sectors such as agriculture, automobiles, Consumer Goods, Technology, Healthcare, Infrastructure, Media, Power, Real Estate, Telecom, Capital Goods, Logistics, Cement amongst other sectors. Our clients value us for our strong research-led investment ideas, superior client servicing track record and exceptional execution skills.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.