GlaxoSmithKline Consumer - March 2013 Results Preview - Motilal Oswal

- We expect Glaxo Consumer to report net sales of INR9.5b, up 18% YoY, led by 7% volume growth. Expect CSD to show a sequential improvement on account of like-to-like base comparison.

- Company launched Paradontax and has also been aggressive in the MFD space, with increased ad spends.

- We estimate 70bp EBITDA margin expansion to 21% on account of mix improvement and staggered price hikes.

- Estimate ~17% growth in PAT led by margin expansion. We expect depreciation expenses to increase, beginning from the current quarter, due to the commencement of a new line at its Sonepat plant.

- The stock trades at 34.2x CY13E EPS and 28.9x CY14E EPS. Neutral.

Source : Equity Bulls

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