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Glaxosmithkline Consumer Healthcare Ltd. - (Amalgamated) Stock Analysis

Large Cap
Evaluated by 3333 users | BSE: 500676 | NSE: GSKCONS |
Consumer Food
Glaxosmithkline Consumer Healthcare’s (GCH) core business is manufacturing of health drinks under the brand Horlicks. The history of the company goes way back in 1950s when bottled Horlicks was imported from England. But in the year 1955 due to change in import policy, import of...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Glaxosmithkline Consumer Healthcare Ltd. - (Amalgamated) has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Dec'09Dec'10Dec'11Dec'12Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 28.31%32.3%33.73%34.67%42.26%29.79%27.68%22.07%21.05%25.79%
Value Creation Index 2.772.852.572.833.702.312.081.451.341.87
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,9222,3062,7653,1873,8954,3084,1363,9914,3174,782
Y-o-Y Gr. Rt.-20%19.9%15.3%22.2%10.6%-4%-3.5%8.2%10.8%
Adjusted EPS (Rs.) 55.4171.283.81102.86127.44138.93161.66155.49165.26232.3
Y-o-Y Gr. Rt.-28.5%17.7%22.7%23.9%9%16.4%-3.8%6.3%40.6%
Book Value per Share (Rs.) 215.21228.28272.06323.61344.85502.44665.48742.51828.7973.65
Adjusted Net Profit 233299352433536584680654695977
Net Op. Cash Flow (Rs. Cr.) 400326391554516611573603723671
Debt to Cash Flow from Ops 0000000.020.0100
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Glaxosmithkline Consumer Healthcare Ltd. - (Amalgamated) should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.7%4.2%5%10.8%
Adjusted EPS 17.3%12.8%12.8%40.6%
Book Value per Share 18.323.113.517.5
Share Price 17% 10.1% 24.8% 7.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'09Dec'10Dec'11Dec'12Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 27.9732.1133.534.5342.2229.7727.6822.0921.0425.78
Operating Profit Margin (%) 16.2616.4318.2417.9917.9817.1520.262120.4623.86
Net Profit Margin (%) 12.1312.9812.7513.5713.7613.5616.4416.3816.120.43
Debt to Equity 0000000000
Working Capital Days 178157170118115223250294324332
Cash Conversion Cycle 3-12-12-14-14-18-33-43-53-50
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 72.46%
Institutions 11.14%
Non-Institutions 16.40%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Glaxosmithkline Consumer Healthcare Ltd. - (Amalgamated) and arrived at the following conclusion:

Past 10 year's financial track record indicates that Glaxosmithkline Consumer Healthcare Ltd. - (Amalgamated) is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Glaxosmithkline Consumer Healthcare Ltd. - (Amalgamated)'s performance infers:

Glaxosmithkline Consumer Healthcare Ltd. - (Amalgamated) earnings have grown by 12.8%, whereas share price has appreciated 10.1% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Glaxosmithkline Consumer Healthcare Ltd. - (Amalgamated) share prices over the last 10 years. Here is what we found out:

Glaxosmithkline Consumer Healthcare Ltd. - (Amalgamated) share price has appreciated 16.8% annually over the past ten years.

Glaxosmithkline Consumer Healthcare’s (GCH) core business is manufacturing of health drinks under the brand Horlicks. The history of the company goes way back in 1950s when bottled Horlicks was imported from England. But in the year 1955 due to change in import policy, import of Horlicks was stopped.

During 1956-57 a team of Horlicks visited India

Glaxosmithkline Consumer Healthcare’s (GCH) core business is manufacturing of health drinks under the brand Horlicks. The history of the company goes way back in 1950s when bottled Horlicks was imported from England. But in the year 1955 due to change in import policy, import of Horlicks was stopped.

During 1956-57 a team of Horlicks visited India to explore possibilities for setting up a plant in India. For this the company approached Maharaja of Nabha, Pratap Singh in Punjab. Later in October 1958 with the support of Maharaja, Hindustan Milkfood Manufacturer (HMML) was established to produce Horlicks.

In the year 1969 Beecham plc acquired Horlicks England, which led the company to become major shareholder in HMML. In 1979 Beecham India was merged with Hindustan Milkfood Manufacturer. Later Beecham plc, UK got merged with SmithKline USA.

In January 2000 the name was changed to Glaxosmithkline Consumer Healthcare.

It exports products to countries like Bangladesh, Myanmar, Sri Lanka, Middle East, Fiji, Mauritius, Nepal, Bhutan and many more.

GCH has manufacturing plants located at Punjab, Andhra Pradesh, Haryana, Hyderabad, Chennai, Guwahati, Ghaziabad, Bangalore and Gurgaon.

Glaxosmithkline Consumer Healthcare has entered into an agreement with Laclede to purchase its dry mouth brand Biotene for $170 million.

In 2011 GSk has launched Sensodyne in an attempt to enter the Indian tooth paste market. "

Products

Nutritional drinks- Under this it manufactures and markets wide range of health drinks. Besides Horlicks, it has created brands like, Boost, Maltova and Viva. Apart from youth, it also caters to other consumers like mothers with Mother’s Horlicks and Horlicks Lite for diabetic consumers.

OTC Products- It promotes and distributes over the counter drugs like pain relief balm -- Iodex, pain relief tablet and syrup -- Crocin and drug for acidity problems -- Eno.

The company’s nutritional food services division has also developed vending of Boost and Horlicks. Around 500 vending machine have been placed in corporates, schools and hospitals.

Award and Recognition

It manufacturing plants have received various certification for its quality and health and safety systems such as OHSAS 18001, ISO 9001:2000 and ISO 14001:2004 by DNV and SA8000.

The company’s Sonepat factory has won the prestigious “National Energy Conservation Award – 2007” from the President of India in the Food Processing Sector.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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