GSK Pharma - Business In Recovery Model: Motilal Oswal

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Motilal Oswal Report

We expect GlaxoSmithKline Pharmaceuticals Ltd. to deliver a revenue/Ebitda/profit after tax compound annual growth rate of 9%/10%/8% over FY24-26, aided by:

an increase in brand awareness,
new launches in vaccines and specialty segment,
volume takeoff in National List of Essential Medicine portfolio, and
traction in new launches such as Trelegy Ellipta/Shingrix.

We await clarity on any further launches from the parent portfolio.

We value GSK Pharma at 45 times 12 months forward earnings to arrive at our target price of Rs 2,380. Considering an 8% earnings CAGR and a stabilizing return ratio of ~35% over FY24-26E, we believe the current valuation adequately factors in the earnings upside. Reiterate Neutral.

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Motilal Oswal GSK Company Update.pdf

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