Hold Glaxosmithkline Consumer Healthcare; target of Rs 5657: Edelweiss

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Edelweiss' research report on Glaxosmithkline Consumer Healthcare

GSK Consumer’s (GSK) Q4FY17 overall revenue (up 2.3% YoY) was slightly ahead of our estimate, while EBITDA and PAT, up 1.5% and 8.4% YoY came in line. Domestic health food drinks (HFD) dipped 1-2% YoY. GSK lost market share (MS) in Horlicks—value MS of 44.8% (Q3FY17: 46.5%) and volume MS of 50.6% (Q3FY17: 52.3%) reflecting heightened competition from current as well as new players like Patanjali Powervita, Sri Sri Ojasvita, Hershey’s syrup and Pediasure.

Outlook

Introduction of sachets to deepen HFD penetration (40% in South) will buoy GSK’s growth. However, lack of presence in the RTD segment is not a right strategy. Intense competition and NPD funnel remain key concerns. At CMP, the stock is trading at 27.8x FY19E. We maintain ‘HOLD/SU’ with target price of INR 5,657.

For all recommendations, 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.

Read More