Views on GlaxoSmithKline Pharmaceuticals Limited 3QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking) on GlaxoSmithKline Pharmaceuticals Limited 3QFY2017 Results:

Glaxo Pharmaceuticals (CMP: INR 2,690 / TP: / Upside:)

"Glaxo Pharmaceuticals posted results lower than expected on all fronts. In sales the company posted sales of INR 689cr V/s INR 700cr expected a YoY de-growth of 5.6%. The sales during the quarter were impacted on back of the mandatory price cuts growth by 5.0% in the current quarter. The estimated impact of demonetization adversely impacted sales further by 5%, mainly in acute & consumer brands. On EBITDA front, the company posted EBITDA of 5.1% V/s 9.1% expected V/s 11.6% in 3QFY2016. Consequently, Adj. PAT came in at INR 40.8cr V/s INR 78.4cr expected, V/s INR 81.0cr in 3QFY2016, de-growth of 49.6% YoY. The growth in the net profit was lower, on lower than expected OPM's, which was eroded on back of lower sales and pricing pressures. We maintain our NEUTRAL rating on the stock."

Shares of GLAXOSMITHKLINE PHARMACEUTICALS LTD. was last trading in BSE at Rs.2690.3 as compared to the previous close of Rs. 2741.05. The total number of shares traded during the day was 1902 in over 325 trades.

The stock hit an intraday high of Rs. 2730 and intraday low of 2682. The net turnover during the day was Rs. 5126223.

Source : Equity Bulls

Keywords