Review

GLAXOSMITHKLINE CONSUMER HEALTHCARE 

Ticker : 500676
FV: Rs10
52-Week H/L: Rs8150.05/6340 

We had recommended GlaxoSmithKline Consumer Healthcare Ltd. in volume no. 35, issue no. 42 (dated August 12, 2019), when the scrip was trading at Rs. 7747.4. The company’s core business is manufacturing health drinks under the brand Horlicks. Earlier also, we had recommended the scrip considering the company’s strong financial growth and new product launches. On the financial front, the company’s revenue has grown 7.87 per cent to Rs. 1,194.32 crore in Q1FY20 as against Rs. 1,107.14 crore posted in Q1FY19. For Q1FY20, PBT stood at Rs. 385.66 crore, up by 23.66 per cent from Rs. 311.86 crore in Q1FY19. PAT increased significantly by 23.77 per cent in Q1FY20 to Rs. 248.08 crore as compared to Rs. 200.44 crore in Q1FY19. The company continues to expand its rural marketing initiatives, thereby, attracting more consumers. Hence, we recommend a HOLD.