Motilal Oswal Financial Services neutral on GlaxoSmithKline; target price: Rs 1340

Motilal Oswal Financial Services has neutral call on GlaxoSmithKline Pharmaceuticals with a target price of Rs 1340. The current market price of GlaxoSmithKline Pharmaceuticals is Rs 1243.65.

GlaxoSmithKline Pharmaceuticals, incorporated in the year 1924, is a Large Cap company (having a market cap of Rs 21043.62 Crore) operating in Pharmaceuticals sector.

GlaxoSmithKline Pharmaceuticals key Products/Revenue Segments include Pharmaceuticals, Other Operating Revenue and Service Income for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 938.84 Crore, up 21.50 % from last quarter Total Income of Rs 772.71 Crore and down -8.39 % from last year same quarter Total Income of Rs 1024.84 Crore. Company has reported net profit after tax of Rs 193.42 Crore in latest quarter.

The company’s top management includes Ms.R S Karnad, Mr.Sridhar Venkatesh, Dr.(Ms.)S Maheshwari, Mr.S Williams, Mr.P V Bhide, Mr.A N Roy, Mr.D Sundaram, Mr.M Anand, Mr.J Chandy. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2022, the company has a total of 17 Crore shares outstanding.

Investment Rationale
In the brokerage's view, higher interest rates have started dampening the demand for mortgages. The brokerage models an advances/PAT CAGR of 11%/26% over FY23-25 foran RoA/RoE of 1.2%/13% in FY25, respectively. Reiterate BUY with a TP ofINR440 (premised on 0.8x Sep’24E P/BV).

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of 31-Dec-2022, while FIIs owned 2.28 per cent, DIIs 10.27 per cent.