Neutral on GlaxoSmithKline Pharmaceuticals, target Rs 2500: Motilal Oswal
Neutral on GlaxoSmithKline Pharmaceuticals Ltd. at a price target of Rs 2500.
By ETMarkets.com | Updated:
Motilal Oswal has a neutral call on GlaxoSmithKline Pharmaceuticals Ltd. with a target price of Rs 2500. The current market price of GlaxoSmithKline Pharmaceuticals Ltd. is Rs 2388.9.
Time period given by the brokerage is a year when GlaxoSmithKline Pharmaceuticals Ltd. price can reach defined target.
GlaxoSmithKline Pharmaceuticals Ltd., incorporated in 1924, is a large-cap company with a market cap of Rs 20234.70 crore.
Investment rationale by Motilal OswalWe believe GLXO has strong parent support, a superior brand portfolio (competitive advantage), a high payout ratio (>100%) and industry leading return ratios (RoCE of ~30%). We maintain Neutral with a TP of INR2,500 @ 40x 1HFY20E EPS (v/s INR2,500 @ 43x 1HFY20E PER). We increase FY19/20E EPS by ~4/2% led by margin improvement. We cut our target multiple to 40x from 43x due to regulatory uncertainty.
Time period given by the brokerage is a year when GlaxoSmithKline Pharmaceuticals Ltd. price can reach defined target.
GlaxoSmithKline Pharmaceuticals Ltd., incorporated in 1924, is a large-cap company with a market cap of Rs 20234.70 crore.
Investment rationale by Motilal OswalWe believe GLXO has strong parent support, a superior brand portfolio (competitive advantage), a high payout ratio (>100%) and industry leading return ratios (RoCE of ~30%). We maintain Neutral with a TP of INR2,500 @ 40x 1HFY20E EPS (v/s INR2,500 @ 43x 1HFY20E PER). We increase FY19/20E EPS by ~4/2% led by margin improvement. We cut our target multiple to 40x from 43x due to regulatory uncertainty.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
Motilal Oswal bullish on online travel portalsADVERTISEMENT
