The shares of GlaxoSmithKline Pharmaceuticals Ltd (GSK Pharma) jumped over 15 percent to trade at Rs 2,684 apiece on February 18, extending gains for the second straight session after releasing its results for the third quarter of the current financial year.
Earlier on February 17, GSK Pharma shares had soared 20 percent to briefly get locked in the upper circuit at Rs 2,421 apiece as brokerages like ICICI Securities and Motilal Oswal continued to maintain positive rating of the stock. It however pared some gains to close at Rs 2,332 per share.
GSK Pharma had reported a consolidated net profit of Rs 230 crore for Q3 FY25. This marks a significant surge of nearly 400 percent from the Rs 46 crore net profit reported in Q3 of previous financial year. Its revenue from operations jumped 18 percent on-year to Rs 949 crore during the reported quarter. However, its gross margin declined by 150 bps on-year to 62.2 percent as a result of a change in the product mix.
ICICI Securities has raised its estimates for GSK Pharma's FY25-26 earnings per share to approximately 5 to 6 percent over better margin outlook. It upgraded its rating on the stock to 'Add' with a target price of Rs 2,250 apiece. The given target price however is lower than its previous estimate of Rs 2,550 apiece.
Meanwhile, Motilal Oswal also increased its earnings estimate for the company by 2 percent/5 percent/7 percent for FY25/FY26/FY27 to factor in differentiated launches in cancer therapy, scale-up of vaccine business and enhanced efforts to boost vaccine prospects. The brokerage kept a 'neutral' rating on the stock, with a target price of Rs 2,170 apiece.
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