Shares of GlaxoSmithKline (GSK) Pharmaceuticals climbed over 3% on the Bombay Stock Exchange (BSE) to an intraday high of ₹2,719.90, as the company announced strong second-quarter results for the financial year 2024-25 (Q2FY25). The stock's gain reflects positive investor sentiment following notable growth in both profit and revenue, making it an attractive option for those looking to invest in stocks.
Strong financial performance in Q2FY25
GSK Pharma’s consolidated net profit surged by 16% year-on-year, reaching ₹252 crore in the September quarter, up from ₹217 crore in the same period last year. This growth is attributed to consistent performance across its primary brands, which have maintained a solid presence in the Indian pharmaceutical market.
Revenue from operations also showed a steady increase, reaching ₹1,010 crore for the quarter, compared to ₹957 crore in Q2FY24. This financial uptrend reinforces the company’s resilience and its stronghold in the market. To mark its centenary year in India, GSK Pharma has announced a special interim dividend of ₹12 per equity share (face value of ₹10 each).
Bhushan Akshikar, Managing Director of GSK Pharmaceuticals, commented that the performance underscores the company’s focus on sustainable growth and innovation, signalling a stable outlook for long-term shareholders.
Market dominance in key portfolios
GSK Pharma's market leadership is evident in its core therapeutic areas. The company’s well-established brands, particularly Augmentin, continued to lead the market. Additionally, its respiratory portfolio, which includes products like Nucala and Trelegy, is seeing steady growth as these treatments gain traction across the country.
The company’s paediatric vaccine portfolio has also contributed significantly to overall growth, showing a robust double-digit increase and maintaining a dominant position within the private sector. In adult vaccines, GSK Pharma is enhancing its footprint with its Shingrix Herpes Zoster vaccine, aimed at boosting adult immunisation rates.
These efforts reflect a balanced portfolio strategy that bolsters its market position while addressing diverse healthcare needs across age groups.
Stock performance and market valuation
GSK Pharma’s stock has outperformed the broader market throughout 2024. Year-to-date, the company’s shares have risen by 36.9%, while over the past year, they have achieved a substantial increase of 87%. In contrast, the BSE Sensex rose by 10.9% year-to-date and 25% in the past year, underscoring GSK Pharma’s impressive growth trajectory compared to the broader market index.
As of 10:55 AM on Wednesday, GSK Pharma’s share price was trading up by 1.72% at ₹2,675 per share, following a slight easing from its intraday peak. The company's total market capitalisation now stands at ₹45,551.59 crore, with shares trading at a price-to-earnings (P/E) multiple of 70.07 times and an earnings per share (EPS) of ₹37.53.
Dividend and future outlook
The announcement of a special interim dividend has been well-received by investors, further boosting interest in GSK Pharma’s stock. This dividend serves as a token of appreciation in celebration of the company's 100-year journey in India, reflecting management’s dedication to rewarding shareholders.
With GSK Pharma’s portfolio strength, sustained profitability, and solid revenue growth, the stock remains a promising option for investors keen to invest in stocks with strong market fundamentals. The company’s future performance will likely benefit from its strategic focus on market-leading brands and expansion in key therapeutic areas.
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