Glaxo Pharma - Right Pill
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2668
Printed Date: 20/Apr/2025 at 1:51pm
Topic: Glaxo Pharma - Right Pill
Posted By: nav_1996
Subject: Glaxo Pharma - Right Pill
Date Posted: 15/Feb/2010 at 6:06pm
Looks like growth is back at Glaxo. This quarter it saw topline grow at 20%.
Advantages of owning Glaxo:
1. It may grow slower that Indian pharma companies but growth will be consistent and profitable.
2. Great balance sheet and 2% div yield.
3. As patent regime sets in they will launch new products from parent which will accelerate top/bottomline growth.
4. It is a great way to own a Pharma stock FMCG way. You don't need to worry about ANDA, DANDA, API and so on.
5. Parent commited to listed entity unlike some other MNCs.
Should be a solid steady compounder. Don't wait for it be very cheap. Has always traded at premium valuations.
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Replies:
Posted By: master
Date Posted: 16/Feb/2010 at 11:18pm
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GSK to increase headcount, introduce more http://www.thehindubusinessline.com/2010/02/16/stories/2010021652670200.htm - products
In a relatively bad year (CY09), it can grow sales at 12%, manage EBIDTA margin at 36% and NPM at 27%. What a business this company has!
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Someone’s sitting in shade today because someone planted a tree long time ago.
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Posted By: beryr
Date Posted: 18/Feb/2010 at 2:28pm
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Any views on Abbott, Merck , Wyeth too .
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Posted By: master
Date Posted: 22/Feb/2010 at 9:33pm
Few take-away from motilal report on GSK Pharma
- Revenue growth by 12% p.a. in next 2 years; focus on generating higher no. of prescriptions rather than price increase.
- EBIDTA margins likely to be sustained.
- Earnings growth of about 14% (EPS estimate for Dec-11 at Rs 78)
- Parent's acquisition of Stiefel Labs globally will strengthen GSK India's presence in dermatology segment.
- Rs40 cr capex annually going forward and one time capex of Rs50-60 cr for ramp-up in Nasik facility
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Someone’s sitting in shade today because someone planted a tree long time ago.
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Posted By: nav_1996
Date Posted: 27/Apr/2010 at 11:47am
Glaxo does it again.
Reports 19% topline and 13% bottomline growth.
Noticeable is topline growth where it is outperforming Indian companies and grabing market share.
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