Views on Glaxo Pharmaceuticals 1QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Glaxo Pharmaceuticals 1QFY2016:

Glaxo Pharmaceuticals 1QFY2016 posted results lower than expected, on sales, OPM and net profit front. The company posted sales of INR 622cr V/s INR 700cr expected and V/s INR 655cr in 2QCY2015, de-growth of 5.1% yoy. The sale during the quarter was impacted on back of supply constraints.

On the operating front, the gross margins came in at 55.0% V/s 57.5% expected and V/s 51.5% in 2QCY2015. Inspite of the same, the OPM's came in at 16.7% V/s 20.9% expected and V/s 16.7% in 2QCY2015, almost flat. This was mainly on back of lower sales during the quarter. Consequently, the Adj. PAT came in at INR 95cr V/s INR 135cr expected V/s INR 98cr in 2QCY2015, de-growth of 3.5% yoy. We maintain our NEUTRAL rating on the stock, on back of valuations.

Shares of GLAXOSMITHKLINE PHARMACEUTICALS LTD. was last trading in BSE at Rs.3507.75 as compared to the previous close of Rs. 3524.65. The total number of shares traded during the day was 3207 in over 814 trades.

The stock hit an intraday high of Rs. 3549.45 and intraday low of 3453. The net turnover during the day was Rs. 11229235.

Source : Equity Bulls

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