GSK Consumer - On Track, Maintain Accumulate - Emkay

Reco: ACCUMULATE
CMP: Rs 4579
Target Price: Rs 4200

- Beat on revenue, but APAT in line – 1) Revenues at Rs 8.5bn, up 17% yoy, 2) EBIDTA margins decline 130bps yoy to 13.9% and 3) APAT at Rs 1.2bn, up 13% yoy

- MFD volume growth at 7% yoy led by Horlicks (9% yoy) and Boost (5% yoy). Value growth for Horlicks was 19% yoy, while for Boost was 15% yoy

- 5% price hike on Horlicks and Boost in January 2013; Considering June 2012 price hike, it sum totals to 7% for CY13

- Pricing capability is reassuring; Maintain ACCUMULATE with price target of Rs4200/Share

Source : Equity Bulls

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