Buy GlaxoSmithKline Consumer Healthcare, target Rs 6765 : ICICI Securities

ICICI Securities has Buy call on GlaxoSmithKline Consumer Healthcare Ltd. with a target price of Rs 6765 .The current market price of GlaxoSmithKline Consumer Healthcare Ltd. is 5030 Time period given by analyst is year when GlaxoSmithKline Consumer Healthcare Ltd. price can reach defined target.
The stock has been trading at 25 times its FY18 earnings multiple, which is at 30 per cent discount to most FMCG companies. The stock is second least expensive in the sector after ITC.
The company's product line is positioned on health & nutrition for kids, which makes it resilient to any cut in discretionary spend. "We believe the impact of demonetisation would only last for a month or two with a consumption shift to lower stock keeping units (SKUs). We also believe GST implementation can benefit the company with the indirect tax rate expected to come down from current 27 per cent to 18 per cent," said the ICICI Securities note.