GSK Consumer
GlaxoSmithKline Consumer Healthcare or GSK Consumer as it is recognized, was recommended by us as one of the Navratnas in the Cover Feature for Muhurat Trading. And it has more than proved to be the perfect choice. The company, for Q3 ended 30th Sept 2013 posted a very good set of performance, with a 17% (YoY) jump in net sales at Rs.972 crore. Its advertising cost during the quarter rose 18% and there was an overall 20% jump in operating cost. It ended the quarter with a net profit at Rs.147 crore, up 15%. The best part of the numbers is that for 9MCY13, the company’s net profit at Rs.423 crore is almost at the same levels as that of CY12 of Rs.437 crore. Thus it is sure to end CY13 with a ‘boost’ of a performance!
This MNC, a 72.46% subsidiary of UK based healthcare major GlaxoSmithKline Group, owns some famous brands in its basket like Horlicks, Boost, Maltova, Viva and OTC products like Crocin , Eno, Iodex. Like almost all MNCs, it is also debt free and as at 30th Sept 2013, its networth stood at Rs.1361 crore. The company is flush with cash and cash equivalents too, which stood at Rs.1726 crore, translating into cash per share of Rs.410. Annualised EPS stands at Rs.135 and this discounts the current price by around 35 times. Stock remains a great long term buy, with a target price of Rs.5,400 over the next one year.