GSK Cons – Q2 FY20 (Unaudited – Cons.)
Share price – 9,239
Total revenue from operations at 1,345 Cr
1,272 Cr (5.72%) YoY | 1,194 Cr (12.62%) QoQ
Half year revenue: 2,539 Cr Vs. 2,379 Cr (6.72%)
Net Profit of 345.31 Cr
275.49 Cr (25.43%) YoY 248.08 (39.17%) QoQ
Half year ending Net Profit: 593.39 Cr Vs. 475.93 Cr (24.82%)
EPS (in Rs.) 82.10
65.50 YoY | 58.99 QoQ
Half Year ending EPS: 141.10 Vs. 113.16
View: Strong result. YoY and QoQ revenue and profit both have up.
Business Highlights & Updates:
Q2FY20 EBITDA is around INR 473.91 Cr Vs. 442.6 Cr in Q2FY20. H1FY20 EBITDA is around INR 880.9 Cr Vs. 769.3 Cr in H1FY19.
On December 03, 2018, the Board of Directors of GlaxoSmithKline Consumer Healthcare Limited ("Company'') had approved a Scheme of amalgamation ("the Scheme") between the Company and Hindustan Unilever Limited ("HUL"), their respective shareholders and creditors subject to obtaining requisite regulatory and other approvals. The Scheme of Amalgamation was filed with the National Company Law Tribunal ("NCLT") seeking directions to hold equity shareholders' and unsecured creditors' meetings. Pursuant to the order dated April 12, 2019 passed by the NCLT, the tribunal convened meetings of the Equity Shareholders and Unsecured Creditors of the Company on June 1, 2019. The Equity Shareholders and Unsecured Creditors of the Company, at their respective meetings, approved the Resolution as set out in the Notice of Tribunal Convened Meeting, approved the Scheme of Amalgamation with requisite majority. The Company has filed the requisite Company Scheme Petition seeking sanction of the NCLT, Chandigarh and the same is pending.
ROE and ROCE is around 26% and 40% respectively and book value per share is around INR 990 and share is currently trading at 9.4x of its book value. Company is currently trading at annualized PE of around 33 which is very fair as per Industry benchmark. Promoter holding in the company is around 72.4% which is too strong and stable, FIIs and mutual fund hold around 4.3% and 4% in the company. Company is debt free. Company has very strong reserve in the tune of INR 4.1K Cr and strong cash and cash equivalent of around INR 4.1 Cr.
Share price high 9,387 and now 9,239. GSK Consumer Healthcare Ltd is an associate of GlaxoSmithKline plc.of U.K, one of world’s largest consumer healthcare companies. GSK consumer has very strong product portfolio and its very popular in all cities in India eg. Boost, Crocin, ENO, Horlicks, Iodex, Otrivin, Sensodyn etc. Company has strong dealership and network growth and continuously goes momentum.
Long term investor still continue with the company and add on dip basis for every correction.