GLAXOSMITHKLINE 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 Q4 ended 31st March 2014 and FY14 posted a very good set of performance. It has changed its year ending from Jan –Dec to April – March thus FY14 is a 15-month fiscal while CY2013 was a 12-month period. For Q4FY14, the company posted a net profit at Rs.172 crore, up 10% (YoY) on a 15% jump in net sales at Rs.1080 crore. It ended the fiscal with a net profit at Rs.675 crore, up 54%. Even if we adjust this 15-month profit to 12-months, the increase is pretty encouraging at 23%.
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 31st March 2014 had a reserves of Rs.1771 crore. The company is flush with cash and cash equivalents too, which stood at Rs. 1839 crore. EPS for FY14 stands at Rs.160 and this discounts the current price by around 26 times. Stock remains a great long term buy, with a target price of Rs.5,400 over the next one year.