Shares of GlaxoSmithKline Pharmaceuticals Ltd. slumped to their lowest level in a month on Tuesday after its third-quarter profit tumbled, missing analysts' estimates.
The company's consolidated net profit declined 72.21% year-on-year to Rs 45.72 crore in the quarter ended December, according to an exchange filing. A Bloomberg poll of analysts' estimates pegged net profit at Rs 78.6 crore.
GSK Pharma Q3 Results Highlights (Consolidated, YoY)
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Revenue up 0.36% at Rs 805.26 crore (Bloomberg estimate: Rs 970 crore).
Ebitda down 4.66% at Rs 218.06 crore. (Bloomberg estimate: Rs 126.2 crore).
Margin narrows 142 basis point to 27.07% (Bloomberg estimate: 13%).
Net profit down 72.21% at Rs 45.72 crore. (Bloomberg estimate: Rs 78.6 crore).
"While GLXO faced headwinds on account of addition of products under national list of essential medicines, it continues to implement efforts to improve business prospects," said Motilal Oswal in a report.
The brokerage has a 'neutral' rating for the stock with a price target of Rs 2,200 apiece. "We believe that the current valuation adequately captures the upside in earnings," it said.
Shares of the company fell as much as 10.64% to Rs 2,091.05 apiece, the lowest level since Jan. 10. It pared losses to trade 8.1% lower at Rs 2,150.90 apiece as of 10:45 a.m. This compares to a 0.45% advance in the NSE Nifty 50 Index.
It has risen 61.12% in the past 12 months. Total traded volume so far in the day stood at 1.55 times its 30-day average. The relative strength index was at 44.02.
Out of six analysts tracking the company, two maintain a 'buy' rating and four suggest a 'hold', according to Bloomberg data. The average 12-month consensus price target implies a downside of 8.7%.
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