X

Glaxosmithkline Pharmaceuticals Ltd Stock Analysis

Large Cap
Evaluated by 2739 users | BSE: 500660 | NSE: GLAXO |
Pharmaceuticals & Drugs

GlaxoSmithKline Pharmaceuticals Limited is a subsidiary of GlaxoSmithKline plc, one of the world's leading research-based pharmaceutical and healthcare companies, committed to improving the quality of human life by enabling people to do more, feel better...

1. Right Stock
Very Good
2. Right Price
3. Right Time

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 Pharmaceuticals Ltd 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'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 30.79%23.01%33.86%23.09%26.8%18.65%14.51%16.94%20.38%13.53%
Value Creation Index 2.771.272.391.311.680.870.450.691.040.35
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,1512,4552,6922,6082,6902,8382,9082,8713,1283,224
Y-o-Y Gr. Rt.-14.2%9.6%-3.1%3.2%5.5%2.5%-1.3%8.9%3.1%
Adjusted EPS (Rs.) 34.0426.4539.4827.2824.1922.117.9520.3325.2315.56
Y-o-Y Gr. Rt.--22.3%49.3%-30.9%-11.3%-8.6%-18.8%13.3%24.1%-38.3%
Book Value per Share (Rs.) 115.2114.26118.46117.4586.37128.88118.46121.44126.31107.47
Adjusted Net Profit 577448669462410374304344427264
Net Op. Cash Flow (Rs. Cr.) 479335314281270139234473409491
Debt to Cash Flow from Ops 0.010.010.010.010.010.010.01000
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 Pharmaceuticals Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.6%3.7%3.5%3.1%
Adjusted EPS -8.3%-8.5%-4.7%-38.3%
Book Value per Share -0.84.5-3.2-14.9
Share Price 3.3% -4.8% 7.5% -1.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 30.8623.0633.9323.1326.8318.6614.5216.9520.3613.31
Operating Profit Margin (%) 31.2831.2629.0318.5317.0916.8514.4117.9219.3520.77
Net Profit Margin (%) 26.8118.2524.8417.7215.2313.1910.4611.9913.668.18
Debt to Equity 0000000000
Working Capital Days 4412599710795359573625601593
Cash Conversion Cycle -35-878519241209
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 75.00%
Institutions 12.44%
Non-Institutions 12.56%
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 Pharmaceuticals Ltd and arrived at the following conclusion:

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

The 5-year analysis of Glaxosmithkline Pharmaceuticals Ltd's performance infers:

Glaxosmithkline Pharmaceuticals Ltd earnings have declined by -8.5%, whereas share price has depreciated -4.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Glaxosmithkline Pharmaceuticals Ltd share prices over the last 10 years. Here is what we found out:

Glaxosmithkline Pharmaceuticals Ltd share price has depreciated 3.3% annually over the past ten years.

GlaxoSmithKline Pharmaceuticals Limited is a subsidiary of GlaxoSmithKline plc, one of the world's leading research-based pharmaceutical and healthcare companies, committed to improving the quality of human life by enabling people to do more, feel better and live longer.

With the combined heritage of Glaxo Wellcome plc and SmithKline Beecham plc, the company has played a pivotal role in the growth of the

GlaxoSmithKline Pharmaceuticals Limited is a subsidiary of GlaxoSmithKline plc, one of the world's leading research-based pharmaceutical and healthcare companies, committed to improving the quality of human life by enabling people to do more, feel better and live longer.

With the combined heritage of Glaxo Wellcome plc and SmithKline Beecham plc, the company has played a pivotal role in the growth of the healthcare industry for almost a century. GSK has been a leader in India since inception, with a history replete with breakthrough innovations. Through the years, it has set benchmarks in conducting business responsibly, including the ways in which it research, develop, sell, and market its products.

The company is headquartered in Mumbai with various regional and sales hubs across the country. The company has made substantial investments in one large manufacturing facility in Nashik, in the state of Maharashtra.

Business area of the company

The company is engaged in research, manufacture and make available a broad range of medicines and vaccines that benefit people. The company’s Pharmaceuticals business has a broad portfolio of innovative and established medicines with commercial leadership in anti-infectives and dermatology. Its R&D approach focuses on science related to the immune system, use of genetics and advanced technologies. Meanwhile, Its Vaccines business has a broad portfolio and innovative pipeline of vaccines to protect people of all ages. The company is the leaders in India in the private segment.

Products

  • Medicines
  • Vaccines
  • Prescribing Information
  • Child-resistant packaging

Award and recognition

2017: 

  • Pharma & Medical Devices Summit & Excellence Awards 2017
  • GSK India wins the Gold Award at the TISS - CLO Summit
  • GSK India won the 'Gold award' in the Sales Enablement Category at the Tata Institute of Social Sciences (TISS) - CLO Summit in Mumbai.

2018:

  • GSK ranked among the 50 best companies in India as per People Capital Index (PCI). GSK was conferred this recognition at the HR Leadership Summit 2018.
  • GSK won the OPPI Salesforce Excellence Award 2018. The award recognises its efforts in launching and scaling an innovative, mobile based platform for sales readiness.
  • Tbact bags the Silver award for ‘Brand of the Year - Acute category 2018’ for marketing excellence. This award is a testimony to Teamwork and accountability displayed by each member of the cross functional team associated with Tbact.
  • The company has been recognised as one of the 100 Best Companies for Women by Working Mother and AVTAR. The award was received by members of the Women's Leadership Board.
  • GSK topped the Access to Medicine Index (ATMI) for the sixth time in a row. ATMI is an independent measure of the top 20 pharmaceutical companies’ efforts to improve access to healthcare in developing countries.
  • GSK's Corporate Communication and Government Affairs team was recognised by Reputation Today as the 30 Top Corporate Communication Teams in India.
  • The company has been recognised as one of the 100 Best Companies for Women by Working Mother and AVTAR for the second time in a row. This is an important milestone in its inclusion and diversity journey.
  • GSK has been recognised as the 'Best Workplaces for Women' by Great Places To Work in India. This award celebrates the efforts of the company's Women's Leadership Initiative towards creating an inclusive work environment.

2019:

  • GSK won the 2019 D&I in India Best Practices Awards in the 'Advancement of Women' category by Community Business.
  • GSK won the award for the 'Best Sales and Operations Planning Practice in Pharma' 2019.
  • T-Bact won 'Brand of the Year' award in the acute category for the second consecutive year in 2019 at the 6th AWACS Awards for marketing excellence.

2020: 

  • GSK was recognised as India’s Best Workplaces for Women 2020 by Great Places to Work
  • GSK was recognised as 100 Best Companies for Women in India 2020 by Working Mother and AVTAR

Milestones

  • 1924: Glaxo comes to India as H J Foster and Co.
  • 1947: Secondary manufacturing of pharmaceuticals begins at Glaxo’s Worli plant.
  • 1956: Primary production of vaccines begins at Worli plant.
  • 1968: Glaxo is registered as Limited company.
  • 1972: Scientists at Beecham Research laboratories discover Amoxycillin and launch Amoxil, which eventually becomes a widely used antibiotic.
  • 1981: Augmentin was launched by Beecham to combat a wide range of bacterial infections in children and adults and the antiviral Zovirax was launched by Wellcome for harpes infections.
  • 1983: Glaxo’s Nashik factory commissioned.
  • 1999: Glaxo India completes 75 years in India it is ranked ‘India’s most respective company’ by business world and again in 2003.
  • 2001: Legal merger of Glaxo India Limited and SmithKline Beecham Pharmaceuticals (India) Limited to form GlaxoSmithKline Pharmaceuticals Limited.
  • 2015: GSK acquired Novartis vaccines business (excluding influenza vaccines).
  • 2016: Launched Priorix- Tetra.
  • 2018: Launched Infanrix Hexa.
  • 2019: Launched Menveo (Quadrivalent Meningococcal Conjugate Vaccine).
  • 2019: The company has launched Spectrum, an employee resource group for raising awareness on LGBT+ among the employees.
  • 2019: Launched a development programme GSK WeLeAP - GSK Women Leadership Action Programme - to develop high potential mid-level women talent.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback