Angel Broking neutral on GlaxoSmithKline Pharma

Angel Broking has maintained neutral rating on GlaxoSmithKline Pharma (Glaxo), in its August 10, 2011 research report.
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Aug 22, 2011, 06.58 PM | Source: Moneycontrol.com

Angel Broking neutral on GlaxoSmithKline Pharma

Angel Broking has maintained neutral rating on GlaxoSmithKline Pharma (Glaxo), in its August 10, 2011 research report.

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Angel Broking neutral on GlaxoSmithKline Pharma

Angel Broking has maintained neutral rating on GlaxoSmithKline Pharma (Glaxo), in its August 10, 2011 research report.

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, Angel Broking |

Angel Broking has maintained neutral rating on GlaxoSmithKline Pharma (Glaxo), in its August 10, 2011 research report.

“GlaxoSmithKline Pharma (Glaxo) reported its 2QCY2011 results, which were mostly in-line with our estimates on the top-line and PAT level. However, the company’s OPM came in lower than our expectation at 33.2% (estimated 34.7%). We remain Neutral on the stock. Glaxo reported net sales of Rs 560cr (Rs 498cr), up 12.5% yoy, in-line with our estimates of Rs 563cr. Gross margin at 63.2% was mostly in-line with our expectations; however, OPM at 33.2% (36.5%) was below our estimate of 34.7%. The company reported net profit of Rs 148cr (Rs 129cr), growth of 14.4% yoy. This was broadly in-line with our expectation of Rs 154.4cr. The company reported net profit growth on the back of higher-than-expected other income, despite lower-than-expected OPM.”

“We expect net sales to post a 13.9% CAGR to Rs 2,788cr and EPS to register a 14.6% CAGR to Rs 86.9 over CY2010–12E. At current levels, the stock is trading at 29.5x and 24.4x CY2011E and CY2012E earnings, respectively. We maintain our estimates and, hence, remain Neutral on the stock,” says Angel Broking research report.

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Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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Angel Broking neutral on GlaxoSmithKline Pharma

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