ICICI Direct is bullish on GSK Consumer has recommended buy rating on the stock with a target price of Rs 8000 in its research report dated November 05, 2018.
ICICI Direct's research report on GSK Consumer
Strong volume growth of 13.7% led to 14.4% increase in Q2FY19 sales to Rs 1,272 crore. Export revenues swelled by 74% on account of addition of Malaysia in the export market. The domestic business grew 10.8% on account of domestic volume growth of 8.7% Auxiliary income increased 20% YoY on the back of an improvement in OTC products and oral care portfolio performance. Volume market share of Horlicks was 49.5% with value market share of 43.3%. On the other hand, volume market share of Boost was 13.9% with value market share of 10.9% Benefitted by low input costs, especially milk prices, EBITDA margins surged 451 bps to 27.8% primarily driven by a 510 bps increase in gross margins, partly offset by higher employee expenses & other overheads during the quarter. With higher operating profit and other income, PAT for the quarter increased 43.2% YoY to Rs 275.5 crore.
We reiterate our BUY recommendation on the stock with a revised target price of Rs 8,000/share, 36x FY20E earnings.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.
The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .