GlaxoSmithkline Consumer HealthCare

C

CMP: 7050

Rationalate: Earnings Growth

According to our channel check company is aggressively pushing New Crocin Advance 650 Tablet against Classical Crocin Advance 500 Tablet by Aggressive Trade promotion.

MRP of new Crocin 650 Tablet is double of classical one .

This means just 30% Increase in Paracetamol API ,company is commanding nearly double the price.

This will naturally boost Profits and Profit Growth would be faster then Revenue Growth.

According to our channel check company has formulated strategy such a way that all Trade channel partners push this new Crocin Advance 650 Tablet over the previous one .

We Expect Company To Post Robust Profitability Growth on back of This new Tablet and Stock to be added for Defensive purpose in this volatile market.

We Expect Company to post PAT of Rs. 1025-1050 Crs or more for FY2019 a growth more then 40%.

Company has recently announced H1 Results.

Revenues :

Rs.2564 Crs 12% Growth

Rs.475 Crs 47% Growth

T- 8900/9000

TF-12-18 Months

Disc – All Views expressed are personal.above article is for study & educational purpose only consult your financial advisor before taking any position.

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