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 ResultsMar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021
Sales 7517888827797766498798578147901010
Expenses588623688654602535674652643638733
Operating Profit163165194124174114205206171152277
OPM %0.220.210.220.160.220.180.230.240.210.190.27
Other Income7331417-7372758-5525-893215
Interest01132111110
Depreciation1419231823222218181818
Profit before tax222176587-63417714912721163165274
Tax %0.340.360.14-0.040.220.260.40.260.770.270.25
Net Profit147114503-6611381117615714121204
EPS in Rs8.676.729.68-39.038.156.544.519.240.857.1512.06

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 SheetDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Sep 2021
Share Capital 85858585858585169169169169
Reserves18511922190517442099192219731970165113301126
Borrowings554322110028
Other Liabilities 108910771136138486999518891771131216141731
Total Liabilities30303088313032163055300439473911313331133054
Fixed Assets9989100123204258325432758386357
CWIP16446211526860592310031201315
Investments112551006000000
Other Assets 28022900295829772577214027002477225527152682
Total Assets30303088313032163055300439473911313331133054

SHARE HOLDING SYNOPSIS

Share Holding patternMar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021
Promoters7575757575757575757575
FIIs1.451.350.540.510.30.230.981.541.591.611.72
DIIs 11.0811.1310.9711.0211.3712.1111.2610.7710.8510.9310.83
Public12.4712.5213.4913.4713.3312.6612.7612.6912.5612.4612.45

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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