Feb 16, 2017 05:28 PM IST | Source: Moneycontrol.com
Buy GSK Consumer; target of Rs 6102: ICICI Direct
ICICI Direct is bullish on GSK Consumer has recommended buy rating on the stock with a target price of Rs 6102 in its research report dated February 14, 2017.
ICICI Direct's research report on GSK Consumer
GSK Consumer reported a weak performance for the quarter impacted by the decline in consumption offtake and reduction in trade & distributors inventory pipeline as a result of demonetisation. Sales for the quarter declined 12.4% YoY to Rs 960.2 crore. We were factoring in a marginal decline of 1.5% YoY to Rs 1013.9 crore on account of expected higher auxiliary income.
We are estimating 12.4% CAGR in the revenue in FY17E-19E and 11.6% CAGR in PAT during the same period. We value the stock at 30x its FY19E EPS of Rs 200.1 and arrive at a target price of Rs 6102/share with a BUY recommendation on the stock.
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