Buy GSK Consumer; target of Rs 6075: ICICI Direct

ICICI Direct's research report on GSK Consumer

GCHL has been a market leader in the Indian health food drinks (HFD) industry with market share of 56.3% by value & 64.4% by volume (Q4FY17). Malt-based drinks category contributes 91% to GCHL’s revenues. According to industry reports, the malt based beverage market has grown 2.7x in FY02-14 to Rs 6000 crore in 2014 and is estimated at Rs 7800 crore for 2016.

Outlook

We continue to maintain our BUY recommendation on the stock valuing it at 30x its FY19E EPS of Rs 199.2 with a target price of Rs 6075/share.