Motilal Oswal Financial Services neutral on GlaxoSmithKline Pharmaceuticals; target price: Rs 1300

Motilal Oswal Financial Services has neutral call on GlaxoSmithKline Pharmaceuticals with a target price of Rs 1300. The current market price of GlaxoSmithKline Pharmaceuticals is Rs 1260.05.

GlaxoSmithKline Pharmaceuticals, incorporated in the year 1924, is a Large Cap company (having a market cap of Rs 21358.71 Crore) operating in Pharmaceuticals sector.

GlaxoSmithKline Pharmaceuticals key Products/Revenue Segments include Pharmaceuticals, Other Operating Revenue and Service Income for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 825.72 Crore, down -12.05 % from last quarter Total Income of Rs 938.84 Crore and down -.06 % from last year same quarter Total Income of Rs 826.24 Crore. Company has reported net profit after tax of Rs 164.56 Crore in latest quarter.

The company’s top management includes Ms.R S Karnad, Mr.Sridhar Venkatesh, Dr.(Ms.)S Maheshwari, Mr.S Williams, Mr.P V Bhide, Mr.A N Roy, Mr.D Sundaram, Mr.M Anand, Mr.J Chandy. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2022, the company has a total of 17 Crore shares outstanding.

Investment Rationale
Compared to 12% earnings CAGR exhibited by the company over FY18-23, the brokerage expects 7% earnings CAGR over FY23-25. While Glaxo continues to strengthen legacy brands and launch products selectively, Motilal Oswal expects price cuts for certain brands under NLEM and a gradual pick-up of the Shingrix brand would moderate earnings growth over the medium term.

Promoter/FII Holdings
Promoters held 75.0 per cent stake in the company as of 31-Dec-2022, while FIIs owned 2.28 per cent, DIIs 10.27 per cent.