Motilal Oswal's research report on GSK Pharma
GLXO delivered a lower-than-expected performance in 4QFY22. Subdued YoY growth in sales and higher raw material cost affected profitability. We lower our FY23/FY24 EPS estimate by 4% each, factoring in a gradual recovery in Vaccines and elevated operating costs. We expect 11% earnings CAGR over FY22-24, adjusting for the tax provisions for promotional expenses of earlier years.
Outlook
We value GLXO at 37x 12-months forward earnings to arrive at our TP of INR1,570. Considering the limited upside from current levels, we maintain our Neutral stance on the stock.
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