Glaxo Pharma – Q2 FY20 (Unaudited – Cons.)
Share price – 1435
Total revenue from operations at 882.02 Cr
816.31 Cr (8.03%) YoY | 787.91 Cr (11.92%) QoQ
Six month ended revenue: 1669.9 Cr Vs. 1551.9 Cr (7.02%)
Net Profit of 502.7 Cr
100.8 Cr (402.43%) YoY 113.5 (345.07%) QoQ
Six month ended Net Profit: 616.29 Cr Vs. 184.9 Cr (234.14%)
EPS (in Rs.) 8.30
6.40 YoY | 6.70 QoQ
Six month ended EPS: 15.00 Vs. 11.69
View: Result is improve. Revenue up and profit up significantly and four fold due to Exceptional gain of Rs 401 cr for the quarter ended 30th September, 2019 Includes gain on sale of land of Rs. 54519 Lakhs, charge on account of Impairment of assets Rs. 2631 Lakhs; Rs. 11074 Lakhs relating to product recall. EBITDA also improved in this quarter.
Business Highlights & Updates:
Q2FY EBITDA is around INR 193.6 Cr Vs. 164.7 Cr in Q2FY19 EBITDA Margin is around 21.9% Vs. 20.1%.
ROE and ROCE is around 21% and 31% respectively and book value per share is around INR 126 and share is currently trading at 11.5x of its book value. Company is currently trading at annualized PE of around 49 which is high as per Industry benchmark. Promoter holding in the company is around 75% which is too strong very stable, Mutual fund and others hold around 3.4% and 7.5% respectively. Company is debt free (Positive) and very strong reserve of around INR 2,176 Cr as of Sep 2019 and cash and cash equivalent around INR 119 Cr in Q2FY20. Company has very strong liquidity in the system and average realization period is also less than 15 days.
Share price high 1544 and now 1460. GlaxoSmithKline Pharmaceuticals Ltd is an Indian subsidiary of GlaxoSmithKline plc, one of the world's leading research based pharmaceutical and healthcare companies. It is one of the oldest pharmaceuticals companies in India. Its product portfolio includes prescription medicines and vaccines. GSK Pharma is the market leader in dermatology and in vaccines in the private segment.
Long term investor should continue with the company with steady return with low risk. Company has very strong corporate governance model and strong brand reputation.
Risk: Pharma company mainly risk associated with US FDA risk.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
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