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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Glaxosmithkline Pharmaceuticals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:09 pm

Market Cap 40,172 Cr.
Current Price 2,370
High / Low3,088/1,616
Stock P/E50.1
Book Value 98.7
Dividend Yield1.35 %
ROCE51.3 %
ROE37.3 %
Face Value 10.0
PEG Ratio1.06

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Glaxosmithkline Pharmaceuticals Ltd

Competitors of Glaxosmithkline Pharmaceuticals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,465 Cr. 318390/10865.7 20.50.21 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 59.8 Cr. 80.694.9/25.822.9 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 28.0 Cr. 19.119.5/8.3536.3 6.640.00 %4.06 %3.33 % 10.0
Godavari Drugs Ltd 85.5 Cr. 114155/87.012.8 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 13,221 Cr. 1,0801,335/62031.2 2072.08 %28.1 %21.1 % 2.00
Industry Average19,469.17 Cr1,178.8154.31184.880.33%16.40%16.92%6.61

All Competitor Stocks of Glaxosmithkline Pharmaceuticals Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales879792744718934816810745917802787762957
Expenses674611588586678618634596660574618618668
Operating Profit205181157133256198175149257229170144289
OPM %23%23%21%18%27%24%22%20%28%29%22%19%30%
Other Income-5542-79463041,322312212385428
Interest1111010100100
Depreciation22181818171815161616171618
Profit before tax127204601602681841,482163262224190181299
Tax %40%23%76%24%24%18%18%27%26%27%30%27%27%
Net Profit76157141212041501,219119193165133132218
EPS in Rs4.519.240.857.1512.068.8871.967.0411.429.717.887.8112.84

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,4142,6472,5633,3052,8382,9082,8713,1283,2242,9263,2783,2523,308
Expenses1,6121,8242,0342,6722,3602,4892,3632,5272,5672,3272,5162,4472,477
Operating Profit802822528633478420508601657598762804832
OPM %33%31%21%19%17%14%18%19%20%20%23%25%25%
Other Income-1773020314912511970131-26291,401103132
Interest0000000164221
Depreciation20182025252738498379686668
Profit before tax6058347117565785115406833065252,093839894
Tax %29%33%32%37%35%34%35%35%70%32%19%27%
Net Profit429562482476376337351445933581,695611648
EPS in Rs25.3033.1728.4328.1222.2019.8820.7026.295.5021.14100.0436.0538.24
Dividend Payout %89%75%88%111%113%75%85%76%727%142%90%89%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-21.01%-10.37%4.15%26.78%-79.10%284.95%373.46%-63.95%
Change in YoY Net Profit Growth (%)0.00%10.64%14.53%22.63%-105.88%364.05%88.52%-437.42%

Glaxosmithkline Pharmaceuticals Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:3%
5 Years:2%
3 Years:6%
TTM:8%
Compounded Profit Growth
10 Years:4%
5 Years:9%
3 Years:11%
TTM:26%
Stock Price CAGR
10 Years:5%
5 Years:8%
3 Years:14%
1 Year:40%
Return on Equity
10 Years:28%
5 Years:37%
3 Years:49%
Last Year:37%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:41 pm

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital858585858585169169169169169169169
Reserves1,9221,9051,7442,0991,9221,9731,9701,6511,3092,4941,5721,6081,503
Borrowings543221103520161915
Other Liabilities1,0771,1361,3848699951,8891,7711,3121,6021,9501,5701,7602,059
Total Liabilities3,0883,1303,2163,0553,0043,9473,9113,1333,1154,6333,3273,5573,746
Fixed Assets89100123204258325432758387331330321296
CWIP44621152686059231,0031201330201421
Investments551006000003665188131,001
Other Assets2,9002,9582,9772,5772,1402,7002,4772,2552,7153,9072,4582,4082,428
Total Assets3,0883,1303,2163,0553,0043,9473,9113,1333,1154,6333,3273,5573,746

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +314281338139234473409490578811484582
Cash from Investing Activity +-110189180499301-104-153-57418-4068089
Cash from Financing Activity +-441-494-497-638-511-307-358-428-696-524-1,543-562
Net Cash Flow-237-2421-02462-1026300-119-25129

Free Cash Flow

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow802.00817.00524.00630.00476.00418.00507.00600.00657.00563.00742.00788.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days161411162119141127232223
Inventory Days9410991156111147131135159144131144
Days Payable7890749773149109100135156122171
Cash Conversion Cycle3233277560173646501131-4
Working Capital Days-42-45-48267-90-72-38-37-92-55-62
ROCE %50%34%42%29%22%26%31%33%38%37%36%51%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs1.72%2.04%2.18%2.16%2.17%2.28%2.28%2.41%2.50%2.93%3.48%4.02%
DIIs10.83%10.73%10.73%10.65%10.54%10.29%10.31%10.25%10.01%8.64%7.90%7.51%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.01%0.00%0.00%
Public12.45%12.23%12.09%12.19%12.29%12.43%12.43%12.35%12.48%13.42%13.62%13.48%
No. of Shareholders1,21,4451,23,4801,10,1411,12,9641,16,6511,20,1271,20,4151,19,0321,15,2681,14,6631,18,9941,18,515

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Aditya Birla Sun Life ELSS Tax Saver Fund1,218,8721.42201.98559,0002024-11-20118.05%
Nippon India Pharma Fund853,9072.28141.5559,0002024-11-2052.76%
ICICI Prudential Large & Mid Cap Fund839,1791.44139.06559,0002024-11-2050.12%
SBI Magnum Midcap Fund806,8950.93133.71559,0002024-11-2044.35%
Aditya Birla Sun Life MNC Fund - Div753,6003.58124.88559,0002024-11-2034.81%
Aditya Birla Sun Life MNC Fund - Gr753,6003.58124.88559,0002024-11-2034.81%
ICICI Prudential Multi Asset Fund753,2570.45124.82559,0002024-11-2034.75%
Nippon India Growth Fund559,0000.4392.63559,0002024-11-200%
ICICI Prudential Value Discovery Fund355,1840.1758.86559,0002024-11-20-36.46%
ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund293,8141.4848.69559,0002024-11-20-47.44%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)41.1436.0899.2931.355.50
Diluted EPS (Rs.)34.8336.05100.0421.145.50
Cash EPS (Rs.)38.9439.93104.0625.7810.38
Book Value[Excl.RevalReserv]/Share (Rs.)104.93102.79157.1987.26107.47
Book Value[Incl.RevalReserv]/Share (Rs.)104.93102.79157.1987.26107.47
Revenue From Operations / Share (Rs.)203.87191.95193.50172.70190.33
PBDIT / Share (Rs.)60.8853.4249.4541.8443.46
PBIT / Share (Rs.)56.7649.5445.4237.2038.58
PBT / Share (Rs.)48.1849.3745.9926.8018.05
Net Profit / Share (Rs.)34.8336.05100.0421.145.50
NP After MI And SOA / Share (Rs.)35.0736.41100.0421.145.50
PBDIT Margin (%)29.8627.8225.5524.2222.83
PBIT Margin (%)27.8425.8023.4721.5320.26
PBT Margin (%)23.6325.7223.7615.519.48
Net Profit Margin (%)17.0818.7851.6912.242.89
NP After MI And SOA Margin (%)17.2018.9651.6912.242.89
Return on Networth / Equity (%)33.4235.4163.6424.225.11
Return on Capital Employeed (%)47.3341.9526.2135.8030.95
Return On Assets (%)16.7018.5336.5711.492.97
Asset Turnover Ratio (%)1.000.800.830.930.91
Current Ratio (X)1.841.882.181.631.74
Quick Ratio (X)1.491.531.871.221.26
Inventory Turnover Ratio (X)1.110.811.040.890.97
Dividend Payout Ratio (NP) (%)91.24247.2129.98189.20363.51
Dividend Payout Ratio (CP) (%)81.66223.3928.82155.15192.63
Earning Retention Ratio (%)8.76-147.2170.02-89.20-263.51
Cash Earning Retention Ratio (%)18.34-123.3971.18-55.15-92.63
Interest Coverage Ratio (X)573.35499.36419.65200.69116.21
Interest Coverage Ratio (Post Tax) (X)408.84336.84185.96131.2269.61
Enterprise Value (Cr.)31854.0621275.9725686.8623243.3020012.10
EV / Net Operating Revenue (X)9.226.547.847.946.21
EV / EBITDA (X)30.8923.5130.6732.8027.18
MarketCap / Net Operating Revenue (X)9.536.908.598.346.54
Retention Ratios (%)8.75-147.2170.01-89.20-263.51
Price / BV (X)18.5212.8810.5816.5111.59
Price / Net Operating Revenue (X)9.536.908.598.346.54
EarningsYield0.010.020.060.010.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Glaxosmithkline Pharmaceuticals Ltd as of November 21, 2024 is: 1,869.34

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Glaxosmithkline Pharmaceuticals Ltd is Overvalued by 21.12% compared to the current share price 2,370.00

Intrinsic Value of Glaxosmithkline Pharmaceuticals Ltd as of November 21, 2024 is: 2,754.99

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Glaxosmithkline Pharmaceuticals Ltd is Undervalued by 16.24% compared to the current share price 2,370.00

Last 5 Year EPS CAGR: 47.38%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 35.75%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -45.67, which is a positive sign.
  3. The company has higher reserves (1,820.92 cr) compared to borrowings (9.46 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (2.46 cr) and profit (598.77 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 34.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Glaxosmithkline Pharmaceuticals Ltd:
    1. Net Profit Margin: 17.08%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 47.33% (Industry Average ROCE: 16.25%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 33.42% (Industry Average ROE: 16.45%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 408.84
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.49
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 50.1 (Industry average Stock P/E: 43.84)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

GlaxoSmithKline Pharmaceuticals Ltd. is a Public Limited Listed company incorporated on 13/11/1924 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24239MH1924PLC001151 and registration number is 001151. Currently Company is involved in the business activities of Manufacture of allopathic pharmaceutical preparations. Company’s Total Operating Revenue is Rs. 3217.51 Cr. and Equity Capital is Rs. 169.41 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsGSK House, Dr. Annie Besant Road, Mumbai Maharashtra 400030in.investorquery@gsk.com
http://www.gsk-india.com
Management
NamePosition Held
Ms. R S KarnadChairperson
Mr. B AkshikarManaging Director
Mr. J ChandyWholeTime Director & CFO
Mr. S WilliamsNon Executive Director
Mr. M AnandIndependent Director
Dr.(Ms.) S MaheshwariIndependent Director
Mr. A N RoyIndependent Director
Mr. D SundaramIndependent Director
Mr. P V BhideIndependent Director

FAQ

What is the latest intrinsic value of Glaxosmithkline Pharmaceuticals Ltd?

The latest intrinsic value of Glaxosmithkline Pharmaceuticals Ltd as on 21 November 2024 is ₹1869.34, which is 21.12% lower than the current market price of ₹2,370.00.

What is the Market Cap of Glaxosmithkline Pharmaceuticals Ltd?

The Market Cap of Glaxosmithkline Pharmaceuticals Ltd is 40,172 Cr..

What is the current Stock Price of Glaxosmithkline Pharmaceuticals Ltd as on 21 November 2024?

The current stock price of Glaxosmithkline Pharmaceuticals Ltd as on 21 November 2024 is ₹2,370.

What is the High / Low of Glaxosmithkline Pharmaceuticals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Glaxosmithkline Pharmaceuticals Ltd stocks is 3,088/1,616.

What is the Stock P/E of Glaxosmithkline Pharmaceuticals Ltd?

The Stock P/E of Glaxosmithkline Pharmaceuticals Ltd is 50.1.

What is the Book Value of Glaxosmithkline Pharmaceuticals Ltd?

The Book Value of Glaxosmithkline Pharmaceuticals Ltd is 98.7.

What is the Dividend Yield of Glaxosmithkline Pharmaceuticals Ltd?

The Dividend Yield of Glaxosmithkline Pharmaceuticals Ltd is 1.35 %.

What is the ROCE of Glaxosmithkline Pharmaceuticals Ltd?

The ROCE of Glaxosmithkline Pharmaceuticals Ltd is 51.3 %.

What is the ROE of Glaxosmithkline Pharmaceuticals Ltd?

The ROE of Glaxosmithkline Pharmaceuticals Ltd is 37.3 %.

What is the Face Value of Glaxosmithkline Pharmaceuticals Ltd?

The Face Value of Glaxosmithkline Pharmaceuticals Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Glaxosmithkline Pharmaceuticals Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE