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|
|Profit before tax||222||176||587||-634||177||149||127||211||63||165||274|
|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 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 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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