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Hold GSK Consumer; target of Rs 8340: ICICI Direct

ICICI Direct recommended hold rating on GSK Consumer with a target price of Rs 8340 in its research report dated August 05, 2019.

August 07, 2019 / 04:16 PM IST
 
 
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ICICI Direct's research report on GSK Consumer

Net revenue for the quarter grew 7.9% YoY to Rs 1,194.3 crore on the back of 5.4% volume growth. However, domestic volume growth was slower at 4% YoY with export region growing 15% during the quarter (due to inclusion of Malaysian territory). The growth is largely led by increasing contribution of sachets. Other income increased by ~40% on account of clearance of old vender balances. Adjusting for one off, it has grown by 15%. EBITDA increased 21.8% to Rs 280.4 crore and EBITDA margins increased 268 bps to 23.5% on the back of 150 bps savings on overhead expenses, 110 bps lower advertisement spend to sales and 40 bps gross margins expansion. PAT witnessed growth of 23.8% YoY to Rs 248.1 crore aided by higher other income and higher operating profit.

Outlook

We maintain our target price of Rs 8340/share on the stock with HOLD recommendation.

For all recommendations report, click here

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Broker Research
first published: Aug 7, 2019 04:16 pm

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