Views on GlaxoSmithKline Pharmaceuticals Limited 4QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking):

Glaxo Pharmaceuticals (CMP: INR 2,460 / TP: / Upside:)

The company, posted 4QFY2017 results better than expected on sales and OPM front. The revenues came in at INR 763cr V/s INR 690cr expected, registering a YoY growth of 10.9%. On the OPM front, the EBDITA margins came in at 15.2% V/s 11.3% expected and 16.1% in 4QFY2016. The margin expansion happened on back of lower than expected employee and other expenses, which grew by 8.0% and 4.6% YoY respectively. The Adj. PAT during the quarter came in at INR 86.7cr V/s INR 95.4cr in 4QFY2016, a YoY dip of 9.2%. The reported profit came in at INR 112.6cr V/s INR 105.8cr, a YoY growth of 6.4%. Also during the quarter the company posted an exceptional net gain of INR 25.9cr, which related to the sale of properties and proceeds from sale of the non-core brands. Given the valuations, we maintain our NEUTRAL rating on the stock.

Shares of GLAXOSMITHKLINE PHARMACEUTICALS LTD. was last trading in BSE at Rs.2459.95 as compared to the previous close of Rs. 2404.3. The total number of shares traded during the day was 1475 in over 366 trades.

The stock hit an intraday high of Rs. 2476.95 and intraday low of 2406.05. The net turnover during the day was Rs. 3594093.

Source : Equity Bulls

Keywords