GSK Consumer
GlaxoSmithKline Consumer Healthcare or GSK Consumer posted a good performance for Q4 and CY13. This stock 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 Q4 ended 31st Dec’ 13 posted a very good set of performance, with a 18% (YoY) jump in net sales at Rs.839 crore and net profit jumped up 15% at Rs.80 crore. This good performance was driven by a 13% rise in volumes and price hikes, which got in higher realizations. These good numbers were despite the 24% rise in advertising and promotion expenses. Both Horlicks as well as Boost did well, especially Horlicks for women which contributed 60% to the sales.
The company has ended CY13 on a much higher note, with a net profit at Rs.503 crore, up 15%. 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. The company is flush with cash and cash equivalents too, which stood at Rs.1726 crore, translating into cash per share of Rs.410. EPS stands at Rs.120 and this discounts the current price by around 36 times. Stock remains a great long term buy, with a target price of Rs.5,400 over the next one year.