Moneycontrol Be a Pro
Get App
Last Updated : Feb 23, 2017 05:54 PM IST | Source:

Hold Glaxosmithkline Consumer; target of Rs 5300: Axis Direct

Axis Direct recommended hold rating on Glaxosmithkline Consumer with a target price of Rs 5300 in its research report dated February 21, 2017.

  • bselive
  • nselive
Todays L/H

Axis Direct's research report on Glaxosmithkline Consumer

Despite a low base, net sales declined 12% with HFD volumes declining 17%. Consumer off-take declined 7% while inventory in trade channel was down 5% YoY. Gross margin declined 110 bps YoY due to RM cost inflation. Cost saving initiatives and 26% lower A&P spend led to 40 bps increase in OPM. PAT declined 10% YoY.


Management intervention is still tactical and largely limited to sachet pricing, as the company rolled pricing of Rs 6 sachet back to Rs 5 and introduced the Rs 10 satchet. We cut our FY17/18 EPS estimate by 6%/ 7%. Maintain HOLD with revised TP of Rs 5,300, based on forward P/E of 27x.

For all recommendations, click here

The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.
First Published on Feb 23, 2017 05:54 pm
Follow us on
Available On