Sharekhan recommended Hold rating on GlaxoSmithKline Consumer Healthcare with a target price of Rs 7931 in its research report dated May 13, 2019.
Sharekhan's research report on GlaxoSmithKline Consumer Healthcare
In Q4FY2019, GlaxoSmithKline Consumer Healthcare (GSK Consumer) recorded a strong operating performance with steady volume growth of 6.3% (revenue growth of 9% y-o-y) and OPM expanding by 357BPS to 24.8%. The flagship brand, Horlicks maintained its leadership position with 43% market share in the HFD category; Variants such as Protein+ and Growth+ are gaining good acceptance in the domestic market. Volume growth is likely to sustain at 5-7%; Margins are likely to come under pressure due to spike in input prices.
Prudent for shareholders to hold the stock as the share-swap deal is more favourable towards shareholders of GSK Consumer; we maintain Hold with an unchanged PT of Rs. 7,931.
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