POSITIONAL TRADING: GSK SHARE PRICE

BUSINESS ANALYSIS

1. GlaxosmithKline Pharmaceuticals Ltd was founded in the year 2000. 
2. The headquarters of GSK is in London, UK. 
3. They deal in the industry of Pharmaceutical, Biotechnology and Consumer goods. 
4. GSK offers wide products such as Pharmaceuticals, Vaccines, Oral healthcare, nutritional products and over the counter medicines. 
5. The number of employees associated with GSK are 99,000.
6. Listing: NSE: GLAXO, BSE: 500660. 

Let’s understand the financial aspect of GSK share price.

FINANCIAL ANALYSIS

The market capitalization of the stock is Rs. 25,584 Cr.
The price to earnings ratio is 54.4 which is lesser than the industry price to earnings ratio of 62.6.
The company has an excellent return on capital employed of 43.8% which is a great sign of growth in the upcoming future and confirms that it will be a multibagger stock.
The return on equity is 28.3% which makes us double sure on the growth capability.
The company has ‘zero’ debt to equity ratio which tends to indicate that the company has paid all of its loans.
With increasing profits, the company is not forgetting its valuable investors and has been paying a healthy dividend of 315.02%.
GSK stands tall at 3rd position competing with the market leaders such as Abbott India and Pfizer based on its current market capitalization.

QUARTERLY RESULTS 

(All values are in Rs. Cr)

Quarterly Results	Sep 2018	Dec 2018	Mar 2019	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021
Sales	816	825	751	788	882	779	776	649	879	857	814	790
Expenses	651	688	588	623	688	654	602	535	674	652	643	638
Operating Profit	165	137	163	165	194	124	174	114	205	206	171	152
Other Income	3	45	73	31	417	-737	27	58	-55	25	-89	32
Profit before tax	157	170	222	176	587	-634	177	149	127	211	63	165
Tax %	0.36	0.33	0.34	0.36	0.14	-0.04	0.22	0.26	0.4	0.26	0.77	0.27
Net Profit	101	114	147	114	503	-661	138	111	76	157	14	121
EPS in Rs	5.95	6.71	8.67	6.7	29.68	-39.03	8.15	6.54	4.51	9.24	0.85	7.15

From the last 3 quarters the company has shown excellent results with an exponential rise in the sales.
In the last quarter of March 2021, the expenses of the company have reduced which indicates that the company is focusing on generating more profits.
There was a tremendous rise in the operating profit for March 2021 which has paved a path for a brighter future.
The earnings per share value is Rs 21.14 which is greater at such cheaper market price.

BALANCE SHEET

(All values are in Rs. Cr)

Balance Sheet	Dec 2009	Dec 2010	Dec 2011	Dec 2012	Dec 2013	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021
Share Capital	85	85	85	85	85	85	85	85	85	169	169	169
Reserves	1701	1867	1851	1922	1905	1744	2099	1922	1973	1970	1651	1330
Borrowings	5	5	5	5	4	3	2	2	1	1	0	0

This is a brief overview of the Financials of the company which showcases the strong footprint it has in Pharmaceutical Industry.

The balance sheet of this multibagger stock is pretty awesome with a borrowings of zero.
The share capital has doubled from 85 Cr to 169 Cr.
There is a decrease in the total liabilities year on year.
For the March 2021, the company had a net cash flow of Rs 300 Cr which the company will definitely use for expansion and growth as the debt associated with them is zero.

SHARE HOLDING PATTERN 

Share Holding	Dec 2018	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	75
FIIs	1.47	1.45	1.35	0.54	0.51	0.3	0.23	0.98	1.54	1.59	1.61	1.72
DIIs	11.01	11.08	11.13	10.97	11.02	11.37	12.11	11.26	10.77	10.85	10.93	10.83
Public	12.52	12.47	12.52	13.49	13.47	13.33	12.66	12.76	12.69	12.56	12.46	12.45

Promoters are very confident with the performance of the company and hence kept a holding of 75%.
This is the maximum percentage the promoters can hold in a company.
The FII’s have a 1.72% holding.
The DII’s have a 10.83% holding while only 12.45% is with the public.

GSK share price has some promising technical prospect so let’s check it.

TECHNICAL ANALYSIS (06th JULY 2021)

If we give a closer look on the chart of GSK share price in a daily timeframe, we would be able to see a formation of rounding bottom pattern on this multibagger stock.
This pattern fascinates us a lot as the success chances of the pattern is awesome.
The pattern is under formation and finding out such stocks in such a stage will definitely give good returns.
The current market price on 06th July 2021 is Rs. 1511.70 which would definitely vary in the upcoming future.
The below image shows the chart pattern which is under formation.

 

DISCLAIMER:
This analysis is only for study purpose. Please don’t buy or sell the stocks based on these analysis. Everyday prices vary so there will be a definite change in the chart patterns as well. We just intent to share the stock information through this platform.