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Glaxosmithkline Pharmaceuticals Ltd. Stock Analysis

Large Cap
Evaluated by 2664 users | BSE: 500660 | NSE: GLAXO |
Pharmaceuticals & Drugs
Established in the year 1924 in India, GlaxoSmithKline Pharmaceuticals Ltd. (GSK Rx India) is one of the oldest pharmaceuticals company and employs over 3,500 people. Globally, the company is a £28.4 billion, leading, research-based healthcare and pharmaceutical company. In India, it is one...
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 4.2% -1.9% 7.2% 1.8%
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 12.24%
Non-Institutions 12.76%
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 -1.9% 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 2.5% annually over the past ten years.

Established in the year 1924 in India, GlaxoSmithKline Pharmaceuticals Ltd. (GSK Rx India) is one of the oldest pharmaceuticals company and employs over 3,500 people. Globally, the company is a £28.4 billion, leading, research-based healthcare and pharmaceutical company. In India, it is one of the market leaders with a turnover of Rs 2080 crore and a share of 5.1%. GlaxoSmithKline - one of the world's leading research-based pharmaceutical and healthcare companies - is

Established in the year 1924 in India, GlaxoSmithKline Pharmaceuticals Ltd. (GSK Rx India) is one of the oldest pharmaceuticals company and employs over 3,500 people. Globally, the company is a £28.4 billion, leading, research-based healthcare and pharmaceutical company. In India, it is one of the market leaders with a turnover of Rs 2080 crore and a share of 5.1%. GlaxoSmithKline - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer.

The company leads in several therapeutic segments - dermatology, anti-helmentics, and hormones. It has 7 products in the top 50 brands, and the top five GSK products are Augmentin, Calpol, Ceftum, Phexin, and Betnesol. The company's vaccines division is ranked first in a fast-growing vaccines market. Some leading products in India are Havrix, Varilrix, Rotarix, Hiberix and Cervarix.

GSK India's R&D centres at Thane and Nashik have been granted recognition by the Department of Scientific and Industrial Research, Government of India. The number of clinical studies conducted in India is rapidly growing across a range of therapy areas. The company's social responsibility programmes focus on development of under developed villages, women, children and aged, specifically in the areas of healthcare and education.

The GSK India product portfolio includes prescription medicines and vaccines. Our prescription medicines range across therapeutic areas such as anti-infectives, dermatology, gynaecology, diabetes, oncology, cardiovascular disease and respiratory diseases. The company is the market leader in most of the therapeutic categories in which it operates. GSK also offers a range of vaccines, for the prevention of hepatitis A, hepatitis B, invasive disease caused by H, influenzae, chickenpox, diphtheria, pertussis, tetanus, rotavirus, cervical cancer and others.

The company's best-in-class field force, backed by a nation-wide network of stockists, ensures that the Company's products are readily available across the nation. The company has two manufacturing units in India, located at Nashik and Thane as well as a clinical development centre in Bangalore. The state of art plant at Nashik makes formulations while bulk drugs and the active pharmaceutical ingredients are manufactured at Thane.

Products

Prescription medicines

The GSK India product portfolio includes prescription medicines and vaccines. The company is a market leader in most of the prescription medicines.

  • Analgesic
  • Anti-Infective
  • Anti-Inflammatory
  • Anti-Parasitic
  • Cardiovascular
  • Dermatology
  • Diabetes
  • Endocrine
  • Gastrointestinal
  • Gynaecology
  • Immunosupressants
  • Nutritional
  • Respiratory
  • CNS
  • Oncology

Vaccines

The company's vaccines division is the leader in fast growing vaccine market. It provides vaccines for prevention of hepatitis A, hepatitis B, invasive disease caused by H, influenzae, chickenpox, diphtheria, pertussis, tetanus and others. Brands like Engerix-B, Havrix, Priorix, Twinrix are some vaccines created by GSK India.

The company was awarded  for the “Multi Cultural Diversity Award” from GlaxoSmithKline Consumer Healthcare, US as an appreciation for the ‘Famili Vaccines’ Programme. The company in 2008 launched two vaccines for dphtheria, ttanus and acellular prtussis (DTP) namely Boostrix and Infanrix. DTP vaccines are part of the routine immunization in over 100 developed and developing countries.

Infanrix is used for childhood immunization against Diphtheria, Tetanus and Pertussis for newborns from the sixth week of age. Boostrix is used for children above seven years of age, adolescents and adults and will boost the waning immunity against Diphtheria, Tetanus and Pertussis.

Milestones

1919 - Trading links with India established

1924 - H J Foster & Co appointed sole agents

1926 - Foster's becomes wholly-owned subsidiary of Joseph Nathan

1947 - Secondary manufacture commences after war

1950

  • Name changed to Glaxo Laboratories
  • SmithKline & French appoints its first medical representative

1956 - Primary production of vaccines begins at Worli

1960's

  • Infant foods manufactured at milk drying plant at Aligarh
  • Manufacturing facility for pharmaceuticals opened in Mumbai

1961 - Vitamin A and betamethasone manufactured at new plant at Thane using imported raw materials

1968 - Registered as a limited company. Animal health products introduced

1969 - Indian shareholders acquire 25 per cent of the company's equity

1971

  • Research and development laboratory built at Thane
  • Relocation of the SmithKline and French plant from Mumbai to Bangalore

1983 - Glaxo Group equity reduced from 75 per cent to 40 per cent Nashik factory commissioned

1984 - SmithKline & Beecham becomes a public limited company under the new name of Eskayef Limited. Plant set up in Mysore for manufacture of bulk drugs

1985 - The company's second basic drugs factory was inaugurated at Ankleshwar, Gujarat

1986 - Joint venture projects Vegepro Foods and Feeds Limited and K G Gluco Biols were launched with equity participation of around 24 per cent by Glaxo India

1987 - The company's name changed to Glindia Limited

1988

  • Production of bulk drug Ranitidine commenced at Ankleshwar
  • Hindustan Foods Limited, a joint venture project for the manufacture of extruded foods, was commissioned at Usgao, Goa with equity participation of 20 per cent by Glaxo and its subsidiaries

1989

  • Production of Zinetac at Nashik commenced
  • The company's name changed to Glaxo India Limited

1990

  • Production of the bulk drug, cephalexin, commenced at Ankleshwar and the salbutamol inhalers at Nashik
  • Glaxo rated amongst the first five of India's most respected companies (4th place), in a survey by Businessworld magazine

1991

  • An agreement was signed with the Council of Scientific and Industrial Research
  • Production of the bulk drug Griseofulvin commenced at Ankleshwar
  • Facilities commissioned at Nashik for the sterile dry filling of the injectable cephalosporins cefuroxime sodium and ceftazidime pentahydrate

1992

  • Liquid injectables block commissioned at Nashik
  • The company's trade investment in Vegepro and Feeds Limited was sold

1993

  • Glaxo Group raised its equity from 40 per cent to 51 per cent
  • The company sold its investment in Hindustan Foods Limited and Dempo Dairy Industries Limited
  • Cetzine, a second generation anti-histamine, and research product of UCB Pharma (Belgium), was launched under a co-marketing agreement
  • The company launched two anti-TB products - Zucox and Rizap
  • Manufacture of Beclomethasone inhalers commenced at Nashik
  • Thane Factory's new fermentation plan was inaugurated, making this site the largest Betamethasone producer in Glaxo Group
  • The company received recognition from the Ministry of Commerce as an export house

1994

  • Glaxo - Ankleshwar wins the Chief Executive's Trophy for Health Safety and Environment Management
  • Glaxo rated as India's 44th most valuable company in a survey conducted by Business Today
  • The company sold its Family Products Division to H J Heinz for a sum of Rs 210 crores. A formal agreement between the companies was signed and transaction was completed in October

1995

  • Glaxo - Thane won the Chief Executive's Trophy for Health Safety and Environmental Management
  • The company declares a Bonus in the ratio of 1:1
  • Voluntary Retirement Scheme introduced for Management Staff 1996 - 175 per cent record dividend declared
  • Change in distribution system - a Voluntary Retirement Scheme introduced at Branches and Depots
  • Government approved state-of-the-art Pharmacy Research & Development Centre (PR&D) inaugurated at Thane to cater to the unmet medical needs and to exploit local commercial opportunities
  • Glaxo rated amongst the top ten of India's most respected companies (8th place) in the Business World - Marg survey
  • Glaxo wins 'Marketing Company of the Year' award from the Institute of Marketing & Management (IMM)
  • Glaxo wins 'The Analyst' award from Chartered Analyst magazine as an investor rewarding company.
  • SmithKline Beechams Bangalore plant awarded the ISO 9002 certification

1997

  • Voluntary Retirement Scheme introduced for workmen at Worli and Thane
  • Glaxo acquires Biddle Sawyer Group of Companies subject to statutory approvals

1998

  • Biddle Sawyer acquisition is completed
  • Worli factory completes two million man-hours free from lost time accident
  • Gramin Arogya Vikas Sanstha - a rural development programme initiated in Nashik
  • Glaxo ranks 21st in Business Today's list of 500 most valuable companies

1999

  • Glaxo India completes 75 years of its operations in India
  • Glaxo India ranked as India's Most Respected Company by BusinessWorld. Glaxo took the top honour from amongst 229 companies surveyed by BusinessWorld - Indica Research
  • Glaxo India wins two Chairman's Awards for the year 1998 (announced in 1999) - The company's Community Support Programme won the Chairman's Award for 'Excellence in Corporate Citizenship' and Glaxo India's Nashik Factory was chosen for the Health, Safety and Environmental Management Award
  • Nashik factory completes three million man-hours free from lost time accidents
  • Winner of the 1999 IMM (Institute of Marketing and Management) Award for Excellence as Marketing Company (organised sector)
  • The company's HIV / AIDS campaign in Press wins the first prize for the best 'Social Responsibility Communication', awarded by the Association of Business Communicators of India (ABCI)
  • The Positive People Campaign entitled 'Real Friendships Don't Die with HIV' also wins the Global Award from the New York Festivals

2000

  • Agrivet Farm Care (AFC) tied up with Merial, the world's largest Animal Health Company, to market poultry vaccines
  • Glaxo India ranked 6th in 'Business Today' - Stern Stewart & Co. listing of India's best Wealth Creator Companies
  • Launches Seretide for Asthma

2001

  • Merger of SmithKline Beecham Pharmaceuticals (India) Limited into Glaxo India Limited. The name of the company changed to GlaxoSmithKline Pharmaceuticals Limited in India

2002

  • J P Garnier inaugurates GSK House
  • VRS at the Ankleshwar site and sale of Ankleshwar property to Glenmark Pharmaceuticals Limited

2003

  • GlaxoSmithKline named as India's most respected Pharmaceutical Company in a survey conducted by BusinessWorld and the Indian Market Research Bureau (IMRB)
  • Launches Cetzine (cetirizine; anti-histamine), Zimig (terbinafine; anti-infective), CCM (calcium citrate maleate; nutritional), Cobadex CZS (multivitamin with trace elements)

2004

  • Augmentin becomes the No. 1 pharmaceutical brand, as rated by IMS
  • Launches Priorix (measles, mumps, rubella vaccine)
  • Receives prestigious Multi Cultural Diversity Award from GlaxoSmithKline Consumer Healthcare Limited, U.S. for the Famili Vaccines programme, selected from 83 entries received from markets world-wide

2005

  • Foundation stone laid for GSK vaccines plant at Nashik
  • Launch of oral contraceptives: Elogen (desogestrel and ethinylestradiol) and Zerogen (progesterone only pill)
  • Enters the diabetes therapeutic segment with the launch of Windia (rosiglitazone) and Windamet (rosiglitazone and metformin)

2006

  • Augmentin grows to a Rs. 100 crore brand
  • In-licensing alliance with Eisai Pharmaceuticals, Japan and launch of Parit (rabeprazole; gastrointestinal therapy area)
  • GlaxoSmithKline divests its Agrivet Farm Care (AFC) Business

2007

  • Launches Carzec (carvedilol) and Zemetril (cefprozil)
  • GlaxoSmithKline divests its Qualigens Fine Chemicals (QFC) Business
  • Launches Arixtra (fondaparinux sodium), an antithrombotic drug used in treating Deep Vein Thromb sis (DVT) and Acute Coronary Syndrome (ACS)

2008

  • Launches Boostrix (Tetanus Toxoid, Reduced Diphtheria Toxoid and Acellular Pertussis Vaccine, Adsorbed), Infanrix (Diphtheria and Tetanus Toxoids and Acellular Pertussis Vaccine, Adsorbed) and Rotarix (Human Rotavirus Vaccine, Live Attenuated) vaccines
  • Launches Tykerb, a drug in combination with capecitabine, is indicated for the treatment of patients with advanced or metastatic breast cancer whose tumours overexpress HER2+/neu (ErbB2+) and who have failed on prior therapy including trastuzumab
  • Launches Benitec (Olmersartan) and Benitec-H (Olmesartan + Hydrochlorothiazide) an anti-hypertensive drug in-licensed from Daiichi Sankyo Company Limited, Japan
  • 2009

    • Launches Cervarix [Human Papillomavirus (Types 16 and 18)] vaccine
    • Launches Dermocalm for treatment of Dry Itchy skin
    • Commences Albendazole production in Nashik to treat Lymphatic Filariasis

    2010

    • Launches Mycamine an injectible antifungal drug in-licensed from Astellas, Japan
    • Andrew Witty dedicates the Albendazole facility at Nashik to WHO to eliminate Lymphatic FilariasisCertificate of Merit awarded to Ankleshwar Factory for 'Excellence in Energy Conservation' by the Federation of Gujarat Mills and Industries (FGMI)
    • Voluntary Retirement Scheme introduced for Glaxo workmen
    • Eskayef Limited renamed SmithKline Beecham Pharmaceuticals India Ltd,
    • The Mysore plant receives ISO 9002 certification
    • The new Iodex plant inaugurated in Bangalore

     

    2011

    • Most Respected Company Award - Business World
    • Launches Votrientâ„¢ indicated for the treatment of advanced renal cell carcinoma (RCC)
    • Launches Revoladeâ„¢ indicated for the treatment of thrombocytopenia (reduced platelet count) in adults with the blood disorder chronic immune (idiopathic) thrombocytopenic purpura (ITP)
    • Vaccine Market Company of the Year award - Frost & Sullivan
    • Special Commendation - Good Corporate Citizen Award 2011 - Bombay Chamber of Commerce
    • Pharma / Life - Science Supply Chain Excellence Award presented at the 5thExpress, Logistics and Supply Chain Conclave
      Unveils Synflorix - a vaccine against invasive pneumococcal disease

    2012

    • Launches Altargoâ„¢ used to treat bacterial infections affecting small areas of skin
    • Introduces Volibris (Ambrisentan), a non-sulphonamide class endothelin receptor antagonist (ERA) used to treat pulmonary arterial hypertension (PAH) indicated for WHO Functional Class II & III patients in India. Volibris® is a trademark of GlaxoSmithKline. Ambrisentan has been licensed to GlaxoSmithKline by Gilead Sciences Inc.
    • GSK India named as India's most admired company in Pharmaceutical space by HAY Group and Fortune Magazine.
    • Awarded the Paediatrician's Award for the Best Vaccine Company of the Year by Frost & Sullivan.
    • Received the Dr. H. R. Nanji Memorial Marketing Excellence Award for CCM in the 'Existing Pharmaceuticals Product' category from OPPI (Organisation of Pharmaceutical Producers of India)

    2013

    • Fourth CII National HR Excellence Award 2013 for 'Significant achievement in HR Excellence'
    • GSK India named as one of 'India's Most Admired Companies' by Fortune India & HAY Group
    • Business Today survey in partnership with PeopleStrong HR Services named GSK India as one of the 'Best Companies to work for'


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

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