Glaxosmithkline Pharmaceuticals Ltd Stock Analysis

BSE: 500660 | NSE: GLAXO | Pharmaceuticals & Drugs | Large Cap

BSE Share Price Jan 20, 18:01
1730.90 19.50 (1.14%)

DeciZen - Make an Informed Decision on Glaxosmithkline Phar

Overall Rating

1. Quality

2. Valuation

Fair
P/E P/S EV/EBITDA

3. Price Trend

Semi Strong

FAQ's

1. Is Glaxosmithkline Pharmaceuticals Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Glaxosmithkline Pharmaceuticals Ltd is a good quality company.

2. Is Glaxosmithkline Pharmaceuticals Ltd undervalued or overvalued?

The key valuation ratios of Glaxosmithkline Pharmaceuticals Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Glaxosmithkline Pharmaceuticals Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Glaxosmithkline Pharmaceuticals Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Glaxosmithkline Phar:

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'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 23%33.9%23.1%26.8%18.7%14.5%16.9%20.4%10.8%30.5%-
Value Creation Index NA1.51.11.40.70.30.50.8-0.01.7-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 2,4552,6922,6082,6902,8382,9082,8713,1283,2243,1993,471
YoY Gr. Rt. %-9.6%-3.1%3.2%5.5%2.5%-1.3%8.9%3.1%-0.8%-
Adj EPS 26.539.527.324.222.11820.325.212.429.729.3
YoY Gr. Rt. %-49.3%-30.9%-11.3%-8.6%-18.8%13.3%24.1%-50.8%139.3%-
BVPS (₹) 114.3118.5117.586.4128.9118.5121.4126.3107.588.576.5
Adj Net Profit 448669462410374304344427210503496
Cash Flow from Ops. 335314281270139234473409491578-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 3%2.4%3.7%-0.8%
Adj EPS 1.3%6.1%13.5%139.3%
BVPS -2.8-7.2-10-17.7
Share Price 5.8% 4.7% 7.4% 13.8%

Key Financial Parameters

Performance Ratio Colour Code Guide
Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 23.133.923.126.818.714.51720.410.630.335.5
Op. Profit Mgn % 31.32918.517.116.914.417.919.420.821.723.2
Net Profit Mgn % 18.324.817.715.213.210.51213.76.515.714.3
Debt to Equity 00000000000
Working Cap Days 2599710795359573625601354143194
Cash Conv. Cycle -8785192412091462

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 35.50%

Net Profit is growing at healthy rate in last 3 years 13.47%

Sales growth is good in last 4 quarters at 12.91%

Sales growth has been subdued in last 3 years 3.66%

Latest Financials - Glaxosmithkline Pharmaceuticals Ltd.

Standalone Consolidated
TTM EPS (₹) 29.1 29.3
TTM Sales (₹ Cr.) 3,431 3,471
BVPS (₹.) 77.5 76.5
Reserves (₹ Cr.) 1,143 1,126
P/BV 22.35 22.59
PE 59.46 58.97
From the Market
52 Week Low / High (₹) 1379.00 / 1917.00
All Time Low / High (₹) 20.31 / 1925.00
Market Cap (₹ Cr.) 29,322
Equity (₹ Cr.) 169.4
Face Value (₹) 10
Industry PE 39.8

Management X-Ray of Glaxosmithkline Phar :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Glaxosmithkline Pharmaceuticals Ltd

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.
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