Motilal Oswal recommended Neutral rating on GSK Pharma with a target price of Rs 1355 in its research report dated July 29, 2020.
Motilal Oswal 's research report on GSK Pharma
GSK Pharma (GLXO)'s performance for the quarter was deeply impacted by the COVID-19-led disruption. As a result, the company posted the lowest revenue recorded in the past 16 quarters. The severity amplified with reduced operating leverage. The outlook is expected to gradually improve with the easing of the lockdown. We reduce our EPS estimate by 26.3%/11.7% for FY21/FY22 to factor COVID-19-led weakness in the Prescription and Vaccination segments.
We continue to value GLXO at 37x 12M forward earnings (25% discount to its three-year average) to arrive at TP of INR1,355. Maintain Neutral. We continue to value GLXO at 37x 12M forward earnings to arrive at TP of INR1,355. We maintain Neutral as the valuation adequately factors the upside.
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