GSK INDIA SHARE PRICE: Target Achieved!!!

Hello and welcome back to one more interesting article wherein we’ll discuss the GSK India share price which was analyzed earlier and has achieved the target predicted by us in a span of 21 days.

Let’s check the parameters which helped the GSK India share price to achieve its total target of 20% approximately.

BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT

To expand its business, the company entered the race to attain the clinical data for NASH (nonalcoholic steatohepatitis) drug. GSK India intended to pay $120 million up front for the rights of this drug for which experiments are still going on. The function of NASH drugs is to silence an enzyme associated with the progression of fatty liver disease.

GSK India released great results for a potential blockbuster anemia pill. This pill showed signs of relief for chronic kidney disease by maintaining or improving hemoglobin levels.

The company also gained additional regulator approvals for its monoclonal antibody drug Nucala.

GSK and Vir Biotechnology bagged superb contracts from the US government to supply their Covid-19 antibody treatment (sotrovimab) for nearly $ 1 billion.

FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT

With great business development, comes superb financial statements.

Figures in Rs. Crores

Quarterly Results	Mar 2019	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021
Sales	751	788	882	779	776	649	879	857	814	790	1010
Expenses	588	623	688	654	602	535	674	652	643	638	733
Operating Profit	163	165	194	124	174	114	205	206	171	152	277
OPM %	0.22	0.21	0.22	0.16	0.22	0.18	0.23	0.24	0.21	0.19	0.27
Other Income	73	31	417	-737	27	58	-55	25	-89	32	15
Interest	0	1	1	3	2	1	1	1	1	1	0
Depreciation	14	19	23	18	23	22	22	18	18	18	18
Profit before tax	222	176	587	-634	177	149	127	211	63	165	274
Tax %	0.34	0.36	0.14	-0.04	0.22	0.26	0.4	0.26	0.77	0.27	0.25
Net Profit	147	114	503	-661	138	111	76	157	14	121	204
EPS in Rs	8.67	6.7	29.68	-39.03	8.15	6.54	4.51	9.24	0.85	7.15	12.06

In September 2021, the company reported a sales of ₹ 1,010 which is an increase of 13% from the sales registered in the year ago period.

The expenses have also increased gradually but it is evident that the company is using the revenue to increase its business.

Net profit is also increasing steadily which shows the focus of the company on the growth aspect.

The company had acquired a borrowing of ₹ 28 Cr in the quarter ended 30-09-21 but this is not of any concern as the company has a net cash flow of ₹ 300 Cr. GSK India can easily pay off its borrowings as it has almost 10 times the value of its borrowings.

Figures in Rs. Crores

Balance Sheet	Dec 2011	Dec 2012	Dec 2013	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Sep 2021
Share Capital	85	85	85	85	85	85	85	169	169	169	169
Reserves	1851	1922	1905	1744	2099	1922	1973	1970	1651	1330	1126
Borrowings	5	5	4	3	2	2	1	1	0	0	28
Other Liabilities	1089	1077	1136	1384	869	995	1889	1771	1312	1614	1731
Total Liabilities	3030	3088	3130	3216	3055	3004	3947	3911	3133	3113	3054
Fixed Assets	99	89	100	123	204	258	325	432	758	386	357
CWIP	16	44	62	115	268	605	923	1003	120	13	15
Investments	112	55	10	0	6	0	0	0	0	0	0
Other Assets	2802	2900	2958	2977	2577	2140	2700	2477	2255	2715	2682
Total Assets	3030	3088	3130	3216	3055	3004	3947	3911	3133	3113	3054

SHARE HOLDING SYNOPSIS

Share Holding pattern	Mar 2019	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021
Promoters	75	75	75	75	75	75	75	75	75	75	75
FIIs	1.45	1.35	0.54	0.51	0.3	0.23	0.98	1.54	1.59	1.61	1.72
DIIs	11.08	11.13	10.97	11.02	11.37	12.11	11.26	10.77	10.85	10.93	10.83
Public	12.47	12.52	13.49	13.47	13.33	12.66	12.76	12.69	12.56	12.46	12.45

Promoters have maintained their position in this stock.

But there is an interest shown by FIIs which is showcased by their action of increasing the stake and currently FIIs have 1.72%.

Now, let’s deep dive into the technicalities of GSK India share price.

CHART PATTERN ANALYSIS

During the prior analysis we had highlighted the formation of a rounding bottom pattern.

Click here for previous analysis on GSK India share price.

The time we did the analysis of this company, the breakout was not achieved.

GSK India share price did achieve its target of ₹ 1,769 and rallied till ₹ 1,825 showcasing a whooping target achievement of 20%.

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