Neutral GSK Pharma; target of Rs 3000: Motilal Oswal

Neutral

Motilal Oswal's research report on GSK Pharma

GlaxoSmithKline Pharmaceuticals (GLXO) delivered lower-than-expected revenue/EBITDA (8%/5% miss) in 1QFY26. However, PAT was in line with expectations due to higher other income. The quarterly performance was impacted by disruption from one of the suppliers. GLXO has been transforming its offerings in the domestic formulation (DF) segment through the addition of specialty products. It is gearing up for gynaec-onco launches in the near term. New products are innovative and exclusive from the GLXO basket, and the traction is expected to be promising over the medium term. With leadership in pediatric vaccines, GLXO is also implementing efforts to create considerable awareness for an adult vaccine (Shingrix).

Outlook

We value GLXO at 44x 12M forward earnings to arrive at a TP of INR3,040. Considering a 15% earnings CAGR over FY25-27 and priced-in valuation (45x FY26E/39x FY27E earnings), we reiterate our Neutral rating on the stock.

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GSK Pharma - 04082025 - moti